OpenAI's Sam Altman does deals in Abu Dhabi amid fundraising

OpenAI CEO Sam Altman is currently in Abu Dhabi, where he has successfully negotiated contracts to deploy AI products in government, the oil industry, and sovereign wealth management. These agreements come as the company behind ChatGPT aims to secure a substantial funding round before an anticipated IPO. Among the four deals, the largest is with ADNOC, a subsidiary of G42, which will utilize OpenAI's Frontier platform for managing AI agents.

This multi-year agreement will integrate decisions related to oilfield development, production, refining, and trading, all powered by G42's infrastructure in the UAE. Financial details of the deal have not been disclosed. Additionally, the Abu Dhabi government is collaborating with OpenAI to ensure that some of its policies can be understood by AI agents.

Meanwhile, Mubadala is utilizing OpenAI's models to assess potential deals. A consortium of UAE investors, including Mubadala-backed MGX, is projected to be the primary investor in OpenAI's upcoming funding round, which follows the company's delayed IPO. The Financial Times has reported that this group will have an option to lease computing capacity in the region.

Altman's presence at ADIPEC is particularly significant given the absence of Exxon and Chevron executives due to security concerns. Furthermore, Altman's visit aligns with the ongoing power constraints faced by the AI industry amidst the rapid expansion of data centers. When questioned about his greatest challenge, Altman succinctly responded with "Energy."

He noted that while AI models are expected to become more efficient and cost-effective, the power required to run them may continue to drive up costs and impede growth.