UAE’s MGX Considers Multi-Billion Dollar Investment in OpenAI

UAE MGX Eyeing Major Stake in OpenAI’s $6.5 Billion Funding Round

MGX, a United Arab Emirates (UAE) government-backed technology investment firm, is reportedly considering participating in a multi-billion funding round for OpenAI.

The fund has not determined the size of its potential investment, the Wall Street Journal (WSJ) reported Thursday (Sept. 12).

OpenAI is seeking $6.5 billion in funding and a $150 billion valuation round, bolstering figures reported by Bloomberg on Wednesday (Sept. 11).

It was also previously reported that the funding round is led by venture capital firm Thrive Capital; Microsoft, which has already invested $13 billion in OpenAI since 2019, is expected to participate; Apple and Nvidia are also in talks to invest in the company.

The WSJ reported Thursday that OpenAI CEO Sam Altman told investors that the startup’s annual recurring revenue recently hit $4 billion.

Separate from the reported financial discussions, Altman has spoken with MGX Group chairman and investor Sheikh Tahnoun bin Zayed Al Nahyan about a potential trillion-dollar initiative to increase the world’s chip-building capacity.

MGX was launched in March by two institutional partners: global investment firm Mubadala and artificial intelligence firm G42. It was created to promote and adopt AI and advanced technologies in the UAE and globally, with a focus on AI infrastructure, AI core technologies and AI applications, Mupadala said in a March 11 press release.

Guided by Abu Dhabi’s Global Investment Strategy for Artificial Intelligence, our singular mission is to accelerate the responsible and inclusive development of AI for the benefit of humanity,” the release said. “MGX builds on Abu Dhabi’s innovation and investment leadership and an extensive network of global technology partners; The company will further advance the UAE’s role as a home and ecosystem for investors and entrepreneurs.

The UAE, with about $2 trillion in sovereign wealth funds, aims to reduce its dependence on oil by positioning itself as a global center for AI, it was reported in June. This goal led to the creation of MGX.

G42 received a $1.5 billion investment from Microsoft in April, which the two companies said will form a long-term collaboration on AI and digital transformation efforts.