OpenAI’s ambitious plans to develop its own semiconductor chips for powering advanced AI models could receive a boost from the United Arab Emirates (UAE), according to a report by the Financial Times.

The report states that MGX — a state-backed group in Abu Dhabi — is in discussions to support OpenAI’s venture to build AI chips in-house. This information comes from two individuals with knowledge of the discussions.

In order to achieve its goal of creating semiconductor chips internally, OpenAI is reportedly seeking investments worth trillions of dollars from investors worldwide. By manufacturing its own chips, the San Francisco-based company aims to reduce its reliance on Nvidia, the current global leader in semiconductor chip technology.

As part of its funding efforts, OpenAI struck a deal with Thrive Capital in February 2023, which reportedly increased the company’s valuation to more than $80 billion, marking an almost threefold increase in under 10 months.

This comes as the UK semiconductor sector gains enhanced access to research funding through the country’s participation in the EU’s ‘Chips Joint Undertaking’.

The UK’s participation in the Chips Joint Undertaking provides the British semiconductor sector with enhanced access to a €1.3 billion pot of f