Report: UAE State-Backed Investment Company MGX Considers Investment in OpenAI

MGX, a United Arab Emirates (UAE) state-backed technology investment company, is reportedly considering participating in a multibillion 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 valuation of $150 billion in the round, the report said, reinforcing figures that Bloomberg reported Wednesday (Sept. 11).

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

The WSJ also reported Thursday that OpenAI CEO Sam Altman told investors that the startup’s annualized recurring revenues recently reached $4 billion.

Separately from the reported funding discussions, Altman has talked with MGX board chair and investor Sheikh Tahnoun bin Zayed al Nahyan about a potential trillion-dollar effort to increase the world’s chip-building capacity, according to the report.

MGX was launched in March by two founding partners: global investment company Mubadala and artificial intelligence firm G42. It was created to invest in the development and adoption of AI and advanced technologies, both in the UAE and globally, with a focus on AI infrastructure, AI core technologies and AI applications, Mubadala said in a March 11 press release.

“Our singular focus is accelerating AI’s responsible and inclusive development for the benefit of humanity, guided by Abu Dhabi’s global investment strategy for artificial intelligence,” the release said. “MGX builds from Abu Dhabi’s innovation and investment leadership and an extensive network of global technology partners; in doing so, the company will further advance the UAE’s role as a home and ecosystem for top technology talent, investors and entrepreneurs.”

It was reported in June that the UAE, with roughly $2 trillion in sovereign wealth funds, aims to reduce its dependence on oil by establishing itself as a world center for AI. This goal led to the creation of MGX.

G42 secured a $1.5 billion investment from Microsoft in April, with the two companies saying the investment builds on their longstanding collaboration in AI and digital transformation initiatives.