MGX, an AI-focused fund launched by the UAE and chaired by Sheikh Tahnoon bin Zayed al-Nahyan, aims to make Abu Dhabi a central hub for AI development. The UAE has been proactive in its AI initiatives, appointing the world's first AI minister in 2017 and opening an AI-focused graduate university in 2019. However, the UAE's AI ambitions are complicated by geopolitical factors, including U.S.-China trade tensions and national security concerns.
Key takeaways:
- Abu Dhabi-based investment company MGX is reportedly in talks to finance Sam Altman's plan to build semiconductor manufacturing capacity for AI processors.
- OpenAI's push to develop its semiconductors is driven by the need to reduce dependency on Nvidia's AI GPUs, such as the H100.
- Sam Altman, OpenAI's CEO, has estimated that the cost of building new semiconductor manufacturing facilities and supporting infrastructure could reach up to $7 trillion.
- The UAE is making strategic moves to become a global AI powerhouse, including the establishment of MGX, an AI-focused fund, and partnerships with major players in the AI industry.