Saudi IT firm MIS sells investment in OpenAI, achieves $3.4m gain

24/02/2025 01:13 AST

Al Moammar Information Systems Co. has announced the sale of its entire investment in OpenAI, a US-based artificial intelligence research organization, for $8.4 million.

According to a Tadawul statement, the sale has resulted in a positive financial impact of $3.4 million, as the cost price of the investment was $5 million.

In January, MIS invested $5 million in OpenAI after the Tadawul-listed firm approved the allocation of $10.7 million to set up a portfolio through self-financing to invest in international AI companies to take advantage of the growth opportunities in the field.

In the latest statement, MIS said the impact of the sale will be reflected in the first quarter of this year.

Established in 2015, OpenAI is globally recognized for developing ChatGPT, a generative artificial intelligence chatbot.

Earlier this month, MIS announced that it signed a memorandum of understanding with Saudi Fransi Capital to explore and evaluate the feasibility of establishing an AI-powered cloud services business in the Kingdom.

At that time, MIS said the new project aims to offer graphics processing unit-based computing solutions to support next-generation AI applications, machine learning, and high-performance computing in Saudi Arabia.

In February, MIS signed a deal valued at SR227.8 million ($60.75 million) with the Saudi Data and AI Authority to carry out the expansion project for the Naqaa Data Center.

In a Tadawul statement, the company said the project includes expanding the Naqaa Data Center in Riyadh to meet the growing demand for hosting, as well as expanding the capacity of the data center in digital technologies.

MIS also procured a contract from Saudi Arabia's Ministry of Health in January, valued at SR70.06 million to operate and maintain the digital infrastructure of 38 hospitals across the Kingdom's southern and western provinces.

According to a Tadawul statement, the scope of the project includes the maintenance and operation of computers, printers, scanners, and operating software.

It also includes supervising servers, information network devices, wireless networks, information security, communication systems, data centers, and their associated components.

In November, MIS announced that its net profit for the first nine months of 2024 reached SR121.56 million, representing a rise of 356 percent compared to the same period in 2023.