Recently, news broke that the UAE's state-ownedinvestcompany MGX Considering participation OpenAI of a multi-billion dollar round ofFinancing.
MGX has yet to determine the exact size of its investment, while OpenAI is looking to reach $6.5 billion in funding and boost the company's valuation to $150 billion, according to the Wall Street Journal.
The funding plan is backed by, among others, venture capital firm Thrive Capital, and it's possible that Microsoft, which after all has invested $13 billion in OpenAI since 2019, could also be involved. Additionally, Apple and NVIDIA are also in talks with OpenAI about investing.
OpenAI's CEO Sam Altman told investors that the company's annualized recurring revenue recently reached $4 billion. This figure demonstrates OpenAI's strong business performance and further attracts the attention of investors.
Meanwhile, Altman had some discussions with MGX's board chairman, investor Tahnoun bin Zayed Al Nahyan, about a potentially trillion-dollar plan to boost global chip production capacity.
Established in March this year, MGX was co-founded by global investment firm Mubadala and AI company G42 to invest in the development and application of AI and advanced technologies, targeting not only the domestic UAE, but also the global market.MGX is focused on the development of AI infrastructure, core technologies and their applications. Mubadala mentioned in a March 11 press release, "Our sole objective is to accelerate the responsible and inclusive development of AI for the benefit of humanity, all of which will be guided by Abu Dhabi's global investment strategy." The establishment of MGX also aims to further cement the UAE's position as a global leader in technology talent, investors and entrepreneurs.
The UAE, which now has a sovereign wealth fund of around $2 trillion, aims to reduce its dependence on oil by establishing a global center for artificial intelligence, which led to the creation of MGX. Meanwhile, G42 received a $1.5 billion investment from Microsoft in April, which further strengthens the two companies' long-standing relationship in the field of artificial intelligence and digital transformation.
