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OpenAI's Altman visits UAE for talks with Abu Dhabi's MGX

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Altman visit to the UAE follows whirlwind Asia tour

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SoftBank in talks to lead up to $40 bln OpenAI funding

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UAE in race to become an AI leader, looks beyond oil

By Federico Maccioni and Krystal Hu

DUBAI/NEW YORK, Feb 5 (Reuters) - OpenAI CEO Sam Altman

plans to visit the United Arab Emirates this week to discuss

raising funds with Abu Dhabi investment group MGX, two sources

with knowledge of the matter said.

Altman's Abu Dhabi stop comes at a key moment for the

ChatGPT maker as established U.S. firms face a new challenge

from cheaper Chinese alternative DeepSeek.

The talks with Abu Dhabi's MGX will follow a whirlwind tour

of Asia by Altman, during which a partnership with Japan's

SoftBank for AI services was announced on Monday.

The UAE, a wealthy oil producer and longtime security

partner of the U.S., is in a race to become an AI leader amid

rising competition from neighbouring Qatar and Saudi Arabia.

MGX took part in a $6.6 billion OpenAI funding round which

closed in October. It was not immediately available for comment.

SoftBank is in talks to lead a funding round of up to $40

billion in OpenAI at a valuation of $300 billion, including the

new funds, in what could be a record single funding round for a

private company, sources have said.

U.S. President Donald Trump last month unveiled a joint

venture dubbed Stargate involving three principal equity backers

OpenAI, SoftBank, and Oracle, in which MGX is also

participating.

The Stargate partners have promised to spend $100 billion to

build the servers providing computing muscle for AI, ramping up

to $500 billion over four years.

Altman visited India on Wednesday, where he met IT Minister

Ashwini Vaishnaw and discussed the country's plan for creating a

low-cost AI ecosystem.

Altman's OpenAI, which is part-owned by Microsoft ( MSFT ),

released ChatGPT in late 2022 and reached over 300 million

weekly active users two years later. But China's DeepSeek

emergence this month showed companies a cheaper alternative to

access AI technology at a fraction of the cost.

AI was top of the agenda when UAE President Sheikh Mohamed

bin Zayed Al Nahyan visited Washington in December.

The UAE is pouring billions of dollars into AI and officials

believe the bet will give it global clout by making the Gulf

state a key economic actor long after oil demand has dried up.

But there have been U.S. concerns over its warm relationship

with China on fears that U.S. technology could be shared with

Beijing.

Abu Dhabi's AI push is led by the state-backed G42 and MGX,

in which the $330 billion wealth fund Mubadala is a partner.