Investment in Abu Dhabi's MGX artificial intelligence (AI) fund may reach up to $25 billion.
Abu Dhabi-Based Investment Group MGX Aims to Raise $25 Billion for AI Expansion
MGX, an Abu Dhabi-based investment group chaired by Sheikh Tahnoon bin Zayed Al Nahyan, the UAE’s national security adviser, is planning to raise up to $25 billion in third-party capital with the aim of boosting and expanding its artificial intelligence holdings.
Key backers for this initiative include Mubadala Investment Co and AI firm G42. The funds will be used to strengthen investments in AI infrastructure and technology companies, both within Abu Dhabi and globally.
MGX has already made significant investments in the AI sector, having previously invested in prominent companies such as OpenAI and Elon Musk’s xAI. This fundraising initiative aligns with the broader UAE strategy to position itself as a leading player in artificial intelligence, complementing agreements like the UAE-U.S. deal to secure advanced AI chip technologies.
The investment group is also involved in global AI ventures, such as the US government’s Stargate project alongside SoftBank, OpenAI, and Oracle, and partnerships with BlackRock and Microsoft focused on AI infrastructure investment. These collaborations are part of a larger Gulf region commitment expected to total around $100 billion in AI investments over the coming years.
Last week, a report by The Financial Times stated that French AI startup Mistral is in talks with MGX and other investors to raise $1 billion at a valuation of $10 billion. Additionally, SenseAI Ventures, an investment firm, has secured a key domestic Limited Partner (LP) for its maiden fund.
MGX executives are considering raising money from financial and strategic investors, not just those in Abu Dhabi, to increase its holdings in artificial intelligence. The investment group has made soft commitments in six companies, while Repello AI, Iom Bioworks, and PlutoPe are companies that have received funding from MGX.
As the crypto industry gathers in Dubai, enthusiasm for Trump-related developments appears to be lessening. However, MGX has reportedly been considering using a Trump-linked stablecoin for a $2-billion investment in Binance, although no final decisions have been made public yet.
In summary, MGX is aiming to raise up to $25 billion from third-party and strategic investors to expand its AI portfolio and infrastructure investments globally. The investment group's key backers include Mubadala Investment Co and G42, and the funds will be used to strengthen investments in AI infrastructure and technology companies, both within Abu Dhabi and globally. The investment aligns with the broader UAE strategy to position itself as a leading player in artificial intelligence and complements existing global AI collaborations.
- The investment group, MGX, which is seeking to raise up to $25 billion, is looking beyond Abu Dhabi for financial and strategic investors to broaden its artificial intelligence holdings.
- With the funds raised, MGX aims to strengthen investments in technology companies within and outside Abu Dhabi, aligning with the United Arab Emirates' strategy to be a leader in artificial intelligence.
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