However, OpenAI faces increasing competition from China's DeepSeek, which is emerging as a cost-effective alternative in the AI market.

The Stargate initiative, announced by U.S. President Donald Trump in January 2025, involves a joint venture with OpenAI, SoftBank, Oracle, and MGX, committing an initial $100 billion to AI-focused computing infrastructure.

In a related development, SoftBank is negotiating to lead a significant funding round for OpenAI, potentially raising up to $40 billion, which would value the company at $300 billion.

The UAE government, under President Sheikh Mohamed bin Zayed Al Nahyan, is making significant investments in artificial intelligence to bolster its global economic influence as oil demand declines.

Altman is looking to raise approximately $40 billion to enhance OpenAI's ChatGPT model and support the Stargate project, which aims to develop AI infrastructure.

During a visit to Washington in December 2024, President Al Nahyan emphasized the UAE's commitment to AI initiatives, showcasing the nation's growing focus on this technology.

As part of its strategy, the UAE aims to position itself as a leader in AI technology, competing with neighboring countries like Qatar and Saudi Arabia.

OpenAI CEO Sam Altman is set to visit the UAE in early February 2025 to discuss potential funding opportunities with MGX, a technology investment firm based in Abu Dhabi.

MGX, launched in March 2024 by the Mubadala sovereign wealth fund and AI company G42, focuses on AI infrastructure and has joined a $30 billion initiative for data centers and energy infrastructure.

This competitive landscape raises concerns in the U.S. regarding the UAE's relationship with China and the potential sharing of American technology.

The UAE's AI initiatives are primarily driven by state-backed firms G42 and MGX, with substantial support from the $330 billion Mubadala wealth fund.

In addition to his UAE visit, Altman recently discussed the establishment of a low-cost AI ecosystem with India's IT Minister Ashwini Vaishnaw during his trip to India.