OpenAI CEO Sam Altman is set to visit Abu Dhabi this week for fundraising discussions with MGX, an investment group backed by the UAE’s sovereign wealth fund Mubadala. This visit comes as OpenAI seeks to bolster its financial resources amid increasing competition, particularly from China’s DeepSeek, a lower-cost AI alternative.
Altman’s discussions with MGX follow a high-profile tour across Asia, where OpenAI recently announced a partnership with Japan’s SoftBank to expand AI services. MGX had already participated in OpenAI’s $6.6 billion funding round in October, and now, talks are expected to explore further investment opportunities.
SoftBank and OpenAI’s Potential $40 Billion Funding Round
Sources indicate that SoftBank is negotiating to lead a funding round of up to $40 billion, potentially valuing OpenAI at a staggering $300 billion. If finalized, this could be one of a private company’s largest single fundraising rounds.
The UAE’s AI Leadership Ambitions
The UAE has been aggressively investing in artificial intelligence as part of its long-term strategy to maintain economic dominance beyond the oil era. The country faces regional competition from Qatar and Saudi Arabia, both of which are also pouring resources into AI.
AI was a central topic during UAE President Sheikh Mohamed bin Zayed Al Nahyan’s visit to Washington in December 2023. Abu Dhabi’s state-backed AI ecosystem, led by G42 and MGX, is positioning the UAE as a global AI powerhouse.
The Stargate Joint Venture and U.S. Concerns
Altman’s visit comes amid developments in Stargate, a $100 billion AI infrastructure project backed by OpenAI, SoftBank, Oracle, and MGX. This initiative aims to scale AI computing power, with investments expected to reach $500 billion over four years.
However, U.S. officials have raised concerns over the UAE’s close ties with China, fearing that advanced AI technology could be shared with Beijing. Despite this, Abu Dhabi remains committed to strengthening its AI sector, positioning itself as a key player in global technology development.
Moving Forward
Sam Altman’s upcoming discussions with MGX in Abu Dhabi signal OpenAI’s ongoing efforts to secure substantial investments as the AI industry evolves. With increasing competition from China, rising AI infrastructure demands, and geopolitical considerations, OpenAI’s strategic partnerships in the Middle East and Asia could play a crucial role in shaping the future of artificial intelligence.
