MGX, a state-backed technology investment company from the United Arab Emirates (UAE), is reportedly exploring a significant investment in OpenAI as part of a multibillion-dollar funding round, according to the Wall Street Journal (WSJ). Although the exact size of MGX’s potential investment remains unclear, OpenAI is seeking to raise $6.5 billion, which would push its valuation to an estimated $150 billion.
The funding round is being led by venture capital firm Thrive Capital, with major technology players such as Microsoft, Apple, and Nvidia also involved in discussions to participate.
Microsoft, already a significant backer of OpenAI, has invested $13 billion in the artificial intelligence company since 2019. Additionally, OpenAI CEO Sam Altman informed investors that the company’s annualized recurring revenue has recently reached $4 billion, underscoring its strong growth trajectory.
Beyond the funding talks, Altman has reportedly engaged in discussions with MGX board chairman Sheikh Tahnoun bin Zayed Al Nahyan about a separate initiative that could potentially involve a trillion-dollar effort to boost global chip-building capacity. This move aligns with global concerns around semiconductor shortages, as well as the UAE’s ambition to play a larger role in the global tech landscape.
MGX, established in March 2024, is a partnership between Mubadala, a global investment company, and G42, a prominent artificial intelligence firm. MGX was designed to accelerate the development and adoption of AI technologies, both in the UAE and globally, with a focus on AI infrastructure, core technologies, and applications.
The creation of MGX is also part of a broader national strategy to position the UAE as a global leader in AI and advanced technologies, with the country seeking to diversify its economy and reduce its dependence on oil revenues.
In June, it was reported that the UAE, with approximately $2 trillion in sovereign wealth funds, has been actively working to establish itself as a global AI hub. MGX plays a key role in this effort, building on Abu Dhabi’s innovation leadership and expanding the UAE’s role in the global AI ecosystem. In a related development, G42 secured a $1.5 billion investment from Microsoft in April 2024, further strengthening their collaboration in AI and digital transformation initiatives.
