Abu Dhabi’s MGX in talks to invest in OpenAI: WSJ reports

Abu Dhabi-based technology investment firm MGX is reportedly in talks with OpenAI as part of a multi-billion dollar funding round for the startup behind ChatGPT.

Sources familiar with the matter said that Wall Street Journal that MGX, which the United Arab Emirates set up earlier this year to invest in artificial intelligence (AI) projects, has not yet determined the size of a potential investment in OpenAI.

OpenAI is in talks to raise $6.5 billion from investors at a $150 billion valuation, cementing the ChatGPT founder’s place as one of the world’s most valuable startups.

According to Bloomberg, venture capital firm Thrive Capital has committed to invest $1 billion and will lead the round, while Microsoft, Apple, and Nvidia are also in talks to invest.

The potential investment could bring the Gulf state closer to one of the world’s leading artificial intelligence companies and one of the most valuable private startups in the US.

Last October, OpenAI partnered with Abu Dhabi AI giant G42 Group as part of its expansion into the UAE and broader GCC region. The partnership with G42 aims to deliver OpenAI’s generative AI models in sectors including financial services, energy, and healthcare.

The UAE set up MGX in March to invest in AI companies and the infrastructure needed to make the technology more widely available. The investment firm counts national wealth fund Mubadala Investment and G42 among its founding partners.

OpenAI Artificial Intelligence Reasoning

Meanwhile, OpenAI on Thursday announced the launch of its “Strawberry” series of AI models.

AI models are designed to spend more time processing responses to queries and solving difficult math, coding, and scientific problems – a key step toward machines achieving human-level cognitive abilities.

The AI ​​models, dubbed o1, are being touted as a sign of technological progress over the past few years, with companies racing to create increasingly advanced AI systems.

OpenAI said in a blog post that its o1 model scored 83% on the International Mathematical Olympiad qualifying exam, while its predecessor, GPT-4o, scored 13%.

The company said the model also improved performance on competitive programming problems and exceeded the level of accuracy required at the PhD level in benchmarks of scientific problems.

Founded in 2015, OpenAI has been at the center of the tech industry’s rapid shift toward AI, kicking off an investment frenzy with the 2022 debut of its easy-to-use chatbot ChatGPT. The company’s products, which can generate lifelike images and human-sounding text with just a few words of encouragement, have captured the attention of consumers and investors alike.

Read: Saudi Arabia Is Building Its Own AI Models — And It’s Helping Nvidia