UAE’s AI Push: Abu Dhabi’s MGX Weighs Multibillion Dollar Investment Fund - Bloomberg
Abu Dhabi-based MGX is considering plans to raise billions of dollars in third-party capital as it looks to ramp up investments in artificial intelligence, according to people familiar with the matter.
The firm aims to raise money through a fund structure for investments in AI infrastructure, the people said, declining to be identified as the information is private. MGX could raise as much as $25 billion for the vehicle, making it among the world’s largest entities of its kind, one of the people said.
As part of their plans, executives are weighing raising money from financial and strategic investors in Abu Dhabi and beyond, the people said, though Mubadala Investment Co. and AI firm G42 will continue to be MGX’s main backers.
No final decisions have been made. A representative for MGX declined to comment.
If the fund eventually taps global investors, that would mark a rare instance of an Abu Dhabi-based entity seeking external cash. The oil-rich city, home to sovereign wealth funds that oversee close to $1.8 trillion, is typically seen as an exporter of capital.
Still, earlier this year, the investment firm led by Guggenheim Partners founder Mark Walter and financier Thomas Tull agreed to take a minority stake in Mubadala’s asset management subsidiary. That marked the second time an outside investor was allowed to own a piece of that entity in recent months.
MGX is overseen by one of the world’s most influential dealmakers — Sheikh Tahnoon bin Zayed Al Nahyan, who’s the United Arab Emirates’ national security advisor, brother to the country’s president, and the man atop a $1.5 trillion empire that spans everything from wealth funds to G42.
Set up last year with Mubadala and G42 as founding partners and a goal of eventually topping $100 billion in assets, MGX has emerged as a key tool in the country’s push for AI dominance.
It plans to contribute to US President Donald Trump’s Stargate venture, has backed both OpenAI and Elon Musk’s xAI, while also teaming up with BlackRock Inc. and Microsoft Corp. on a $30 billion plan to build data warehouses and energy infrastructure.
The firm’s been beefing up its US operations in recent months by hiring executives from firms like Apollo Global Management Inc. and Warburg Pincus LLC.
No comments:
Post a Comment