OpenAI CEO Sam Altman is scheduled to travel to the United Arab Emirates this week for discussions on fundraising with the Abu Dhabi investment group MGX, according to two informed sources.
This visit to Abu Dhabi is pivotal for ChatGPT's creator, OpenAI, as it faces new competition from the more affordable Chinese alternative, DeepSeek, challenging established U.S. companies.
Following a recent tour of Asia, Altman announced a partnership with a Japanese AI services provider on Monday, preceding his upcoming discussions with MGX in Abu Dhabi.
The UAE, a wealthy oil-producing nation and long-time security ally of the U.S., is striving to lead in AI technology amid increasing competition from neighboring countries such as Qatar and Saudi Arabia.
MGX participated in OpenAI's $6.6 billion funding round last October, although the investment group was not immediately available for comment.
Reports suggest that SoftBank is planning to lead a funding round for OpenAI, potentially reaching $40 billion and valuating the company at $300 billion, setting a potential record for single private company fundraising.
U.S. President Donald Trump recently mentioned a joint venture called Stargate, involving principal equity partners OpenAI, SoftBank, and Oracle, with participation from MGX. This initiative aims to invest heavily in server infrastructure to boost AI capabilities, scaling up to $500 billion over four years.
Altman recently visited India to meet with IT Minister Ashwini Vaishnaw, discussing the country's strategy to establish a cost-effective AI ecosystem.
OpenAI, a company partially owned by Microsoft, launched ChatGPT in late 2022, reaching over 300 million weekly active users two years later. The emergence of China's DeepSeek this month provided companies with a more affordable AI technology alternative.
During UAE President Sheikh Mohamed bin Zayed Al Nahyan's visit to Washington in December, AI was a major topic of discussion, reflecting the UAE's substantial investment in becoming a global AI leader and economic powerhouse beyond its oil reserves.
Concerns have been raised in the U.S. regarding the UAE's close ties with China, fearing potential technology sharing with Beijing.
In Abu Dhabi, the AI agenda is driven by the state-backed G42 and MGX, with the $330 billion wealth fund Mubadala as a partner in these initiatives.