#UAE: #AbuDhabi’s Lunate Weighs $1 Billion Commitment to AI Firm MGX - Bloomberg

UAE: Abu Dhabi’s Lunate Weighs $1 Billion Commitment to AI Firm MGX - Bloomberg

Abu Dhabi asset manager Lunate is in discussions to commit as much as $1 billion to state-backed artificial intelligence investor MGX, according to people familiar with the matter.

Lunate deploys capital through four distinct fund strategies, niche partnerships, and also manages money on behalf of other investors. Details on the exact structure of its planned MGX investment were not immediately available.

Discussions are ongoing and no final decisions have been made, the people said, asking not to be identified as the information is private. Representatives for Lunate declined to comment, while MGX couldn’t immediately be reached for comment.

MGX, founded by Abu Dhabi AI firm G42 and wealth fund Mubadala Investment Co., has been considering plans to raise billions of dollars in third-party capital through a fund structure. The firm is looking to ramp up AI investments, after having already backed OpenAI and xAI, while teaming up with BlackRock Inc. and Microsoft Corp. on a $30 billion plan to build data warehouses and energy infrastructure.

It’s looking to raise as much as $25 billion for the new vehicle, which would rank as one of the largest entities of its kind, Bloomberg News reported has reported. As part of their plans, MGX executives were weighing raising money from financial and strategic investors in Abu Dhabi and beyond.

Overseen by Sheikh Tahnoon bin Zayed Al Nahyan, MGX has become central to Abu Dhabi’s AI ambitions since it was set up last year. Lunate, for its part, has also done a few deals that dovetail into those efforts, including an investment into OpenAI.

The asset manager works with many of the world’s largest firms including BlackRock, Blackstone Inc., CVC Capital Partners Plc, and Brookfield Asset Management. It commits capital both as a limited partner and as a general partner, and has deployed $13.5 billion since being set up two years ago.

It raised about $17 billion in 2024 for its flagship funds and is targeting a higher amount for funds launching in 2026, Bloomberg News has reported. The firm counts Abu Dhabi sovereign wealth fund ADQ and Chimera Investment, which are both ultimately overseen by Sheikh Tahnoon, as anchor limited partners.

Lunate’s three managing partners hold stakes in the firm, which describes itself as independently-managed with Chimera Investment as a majority owner.