TLDR: Abu Dhabi-based investment firm MGX is reportedly considering plans to raise as much as $25 billion in third-party capital to significantly expand its artificial intelligence holdings and infrastructure investments. The move would position MGX as one of the world’s largest entities focused on AI funding.
Abu Dhabi, UAE – MGX, a prominent investment firm based in Abu Dhabi, is reportedly exploring ambitious plans to secure up to $25 billion in third-party capital to bolster its investments in the rapidly expanding field of artificial intelligence. This strategic initiative, if realized, would establish MGX as one of the largest global entities dedicated to AI funding, according to sources familiar with the matter.
The firm aims to channel these substantial funds into AI infrastructure and related holdings, signaling a significant push by the UAE into the global AI landscape. While MGX has declined to comment on the reports, the information, initially reported by Bloomberg News, indicates that discussions are underway to raise capital from both financial and strategic investors, within Abu Dhabi and internationally.
Mubadala Investment Co and the AI firm G42 are expected to remain the primary backers of MGX. The investment firm is chaired by Sheikh Tahnoon bin Zayed Al Nahyan, who serves as the UAE’s national security adviser and is the brother of UAE President Sheikh Mohammed bin Zayed. This leadership underscores the strategic importance of AI investments for the UAE.
MGX has already made notable strides in the AI sector, with existing investments in leading AI companies such as OpenAI and Elon Musk’s xAI. Furthermore, recent reports from the Financial Times indicate that MGX is currently in discussions with French AI startup Mistral, alongside other investors, to potentially raise $1 billion at a valuation of $10 billion, highlighting MGX’s active engagement in high-profile AI ventures.
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No final decisions regarding the $25 billion fundraising have been made, as discussions are ongoing. However, the potential scale of this endeavor reflects a strong commitment from Abu Dhabi to become a major player in the global artificial intelligence ecosystem.
