UAE state oil company announces OpenAI partnership

Abu Dhabi, Nov 2 - The UAE state oil company, ADNOC, has announced a groundbreaking partnership with OpenAI, making it the world's first energy firm to utilize the cutting-edge AI platform. The collaboration was unveiled at the UAE's prominent oil industry event, ADIPEC, as OpenAI CEO Sam Altman attended the gathering. The Middle East nation, which heavily relies on oil exports and has been grappling with the effects of the Iran-led blockade of the Strait of Hormuz, is increasingly turning to AI technology to diversify its economy.

ADNOC's statement revealed that OpenAI's advanced reasoning models will integrate decades of data sourced from thousands of wells, multiple stacked reservoirs, and hundreds of surface facilities along with capital, cost, and commercial factors. The objective is to optimize full-field development master plans and provide real-time valuation of every barrel while it is still underground. This partnership extends to collaborating with G42, an AI-focused Emirati company chaired by the brother of the UAE's president.

ADNOC's Managing Director and CEO, Sultan Al Jaber, emphasized that AI's potential in the energy sector is immense, stating, "From the moment ChatGPT was born, the world has asked what energy can do for AI, and now together we will find out what AI can do for energy." OpenAI CEO Sam Altman commended the UAE's forward-thinking approach towards AI adoption.

The UAE has made significant strides in AI since 2017, when it appointed the world's first AI minister and became the second country to unveil a national AI strategy. In 2020, the founding of G42, backed by Abu Dhabi's sovereign wealth fund Mubadala, and chaired by Sheikh Tahnoon bin Zayed Al Nahyan, further solidified the nation's commitment to AI.

The US lifted restrictions on exporting advanced Nvidia chips to both the UAE and Saudi Arabia, providing much-needed resources to the tech sector. Recently, Saudi state oil company Aramco invested 9.9 billion Saudi riyals (RM10.7 billion) in Humain, a Saudi AI company, to scale up and meet the growing demand for AI solutions.