Abu Dhabi Investment Firm Explores Semiconductor Sector Investment
The UAE’s AI ambitions face geopolitical challenges amidst tensions, prompting a reassessment of partnerships with Chinese firms.
In a strategic move to bolster its position in the global artificial intelligence (AI) industry, Abu Dhabi-based investment company MGX is in talks to finance Sam Altman’s ambitious plan to build excessive semiconductor manufacturing capacity for AI processors. As reported by the Financial Times, this initiative aligns with the United Arab Emirates’ strategy to emerge as a key player in the AI sector.
Abu Dhabi’s push for AI dominance
The UAE’s proactive approach to AI development has been evident through various initiatives, including establishing MGX, an AI-focused fund chaired by Sheikh Tahnoon bin Zayed al-Nahyan, the national security adviser. Backed by Abu Dhabi’s sovereign investment fund, Mubadala, MGX aims to position Abu Dhabi as a central hub for AI innovation, leveraging the country’s financial resources and political backing.
Sam Altman, CEO of OpenAI, spearheads efforts to reduce dependency on existing AI processors, notably Nvidia’s AI GPUs, by developing proprietary semiconductor technology. Altman’s vision encompasses not only the development of AI processors but also ensuring their steady supply to OpenAI and potentially other companies. He believes that existing chipmakers lack sufficient manufacturing capacities to meet the growing global demand for AI chips, especially after recent semiconductor supply crises.
Altman estimates the cost of building new semiconductor manufacturing facilities and supporting infrastructure to be up to $7 trillion. To realize this vision, he has been engaging in discussions with various stakeholders, including MGX, as traditional venture capitalists are unlikely to invest such vast sums.
