April 19, 2024
Abu Dhabi's $100B AI Investment Firm

Abu Dhabi’s $100B AI Investment Firm

Abu Dhabi is establishing a technology investment firm targeting artificial intelligence and semiconductor deals, potentially exceeding $100 billion in assets under management within a few years, according to sources familiar with the matter.

The firm, named MGX, will have sovereign wealth fund Mubadala Investment Co. and AI firm G42 as founding partners. Ahmed Yahia Al Idrissi, CEO of Mubadala’s direct investments platform, will lead MGX as its CEO. Initially funded by Abu Dhabi’s government, MGX will pursue deals in AI infrastructure, semiconductors, and AI core technologies and applications.

Mubadala and G42’s portfolios will remain intact, with MGX pursuing its ventures. The company aims to collaborate with top partners across these verticals. The decision to establish MGX reflects the United Arab Emirates’ (UAE) growing focus on the technology sector.

Abu Dhabi, the UAE’s capital, aspires to become a global leader in AI technology testing and regulation. The chair of MGX will be UAE National Security Adviser Sheikh Tahnoon bin Zayed Al Nahyan. Serving as vice chairman is Mubadala CEO Khaldoon Al Mubarak. Board members consist of UAE Central Bank Vice Chairman Jassem Al Zaabi, G42 CEO Peng Xiao, and Al Idrissi.

Abu Dhabi boasts several wealth funds, managing approximately $1.5 trillion in sovereign wealth globally. Mubadala, with assets totaling $276 billion, is one of the emirate’s three state-backed investors.

Source: Global SWF and Bloomberg data

“With the launch of MGX, we are entering a new era where Abu Dhabi is not only a global technology leader but also shaping the AI roadmap of the world,” said Peng Xiao. However, Mubadala declined to comment on the matter. G42, a part of Sheikh Tahnoon’s $1.5 trillion empire, has been pivotal in the UAE’s AI initiatives. Its partnerships include collaborations with OpenAI, with plans for expansion in the UAE and beyond.

G42 has discussed potential funding for a new chip venture with OpenAI, focusing on reducing its presence in China and investing in Western markets to address US concerns regarding ties to Beijing, as stated by CEO Xiao last month.

G42 intends to deploy capital in markets where its key AI partners operate. Abu Dhabi’s establishment of MGX underscores its commitment to becoming a global technology hub. With prominent partners like Mubadala and G42, MGX aims to play a significant role in shaping the future of AI and semiconductor industries, backed by substantial assets and strategic leadership.

Image by wirestock on Freepik

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