TLDR: Abu Dhabi’s state-backed technology investment company, MGX, is making significant strides in the artificial intelligence sector with substantial global investments. Concurrently, the fund is reportedly a crucial investor in the U.S. operations of TikTok, a move aimed at preventing a ban on the popular social media platform, a deal that has garnered attention due to its connections with former President Donald Trump and his business interests.
MGX, a prominent technology investment company based in Abu Dhabi, is rapidly emerging as a global force in artificial intelligence and advanced technologies, while also playing a pivotal role in the future of TikTok’s U.S. operations. Established in March 2024 by the Abu Dhabi government, MGX’s explicit mandate is to ‘accelerate the development and adoption of AI and advanced technologies’ through strategic global partnerships. The fund was launched by Mubadala, Abu Dhabi’s sovereign wealth fund, and G42, an artificial intelligence holding company that has seen a $1.5 billion investment from Microsoft.
Chaired by Sheikh Tahnoon bin Zayed Al Nahyan, who also serves as the deputy ruler of Abu Dhabi and the UAE’s National Security Adviser, MGX has been aggressively expanding its AI portfolio. Its investments include stakes in leading AI firms such as Databricks, Anthropic, xAI, OpenAI, and Altera. Furthermore, MGX is involved in a substantial $100 billion U.S. infrastructure partnership with tech giants Microsoft and BlackRock, and recently participated in a $40 billion acquisition of Aligned Data Centers alongside the Artificial Infrastructure Partnership and BlackRock.
Beyond its AI endeavors, MGX has become central to efforts to save TikTok’s U.S. business from a potential ban. Reports indicate that MGX, in conjunction with Oracle and private-equity firm Silver Lake, is set to acquire a combined 45% stake in TikTok USA. The Guardian reported that MGX itself would take a 15% stake and secure a board seat in the spun-out TikTok US, a deal that values the social media company at $14 billion. This development follows former President Donald Trump’s executive order approving the proposed deal, which aims to ensure that TikTok US is majority-owned and controlled by U.S. entities, with American companies expected to control over 65% of the company, while ByteDance, TikTok’s Chinese owner, would retain a 19.9% stake.
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The deal has drawn scrutiny due to MGX’s reported ties to former President Trump’s personal business. CNBC highlighted that MGX previously paid approximately $2 billion to acquire USD1 stablecoins from a company linked to President Trump, a transaction that could have financially benefited his family. This connection has raised questions, as MGX is simultaneously engaging in the high-profile TikTok acquisition. Trump himself named prominent figures like Larry Ellison, Michael Dell, and Rupert Murdoch’s Fox as other investors in the new TikTok US entity, emphasizing its intended American operation. Despite some initial resistance from the Chinese side, Vice-President JD Vance confirmed the deal’s valuation and the primary objective to protect Americans’ data privacy.
