(July 1): MGX has raised US$49 billion for one of the largest ever funds dedicated to artificial intelligence (AI) trading, placing the two-year-old Abu Dhabi company among the most influential investors in the sector globally.
The Emirati company attracted investment from a group of major institutional and private investors from the Middle East, North America, Asia and Europe, according to a statement on Wednesday. The total amount of funds raised exceeded the goal of $45 billion.
MGX has already deployed capital from new funds that have been closed in recent weeks. bloomberg news It was reported last week. The move highlights how Abu Dhabi aims to turn its vast oil wealth into long-term influence over technologies that are expected to reshape the global economy.
The emirate is rapidly emerging as one of the preeminent funders of the AI boom, and MGX has been at the center of these efforts, leveraging Abu Dhabi’s financial strength and partnerships with leading technology companies to build stakes across the industry’s most strategic assets.
Chaired by Sheikh Tahnoun bin Zayed Al Nahyan and supported by Mubadala Investment Company and G42, MGX quickly built a portfolio spanning frontier AI models, semiconductor infrastructure, and data centers. The company has invested in OpenAI and xAI, as well as supporting global projects alongside BlackRock Inc and Microsoft Corp.
The new spending will be on top of the billions it has already deployed as it races toward its goal of more than $100 billion in assets under management. To get there, we plan to spend as much as US$10 billion annually over the next few years. bloomberg news reported.
The new funding comes as competition for AI assets intensifies as governments, sovereign wealth funds and private equity firms race to secure exposure to what many executives see as the defining technology cycle of the coming decades. Abu Dhabi has positioned itself at the center of that ecosystem, combining abundant capital, access to low-cost energy and close relationships with global technology leaders.
At the same time, gains in tech stocks have slowed in recent days as investors worry that their prices are getting too high, especially for companies spending hundreds of billions of dollars on AI.
For MGX, attracting third-party capital will further differentiate it from traditional Gulf sovereign wealth funds, which primarily invest in government funds. From the beginning, the company was designed to operate like a global alternative asset manager, investing with an Abu Dhabi sponsor and raising institutional investors.
This model allows us to pursue larger deals while expanding our investor base and scaling towards long-term goals.
The new capital will provide MGX with additional firepower as the cost of developing frontier AI systems continues to rise. Training models, and building the data centers and semiconductor infrastructure needed to support them, increasingly requires spending tens of billions of dollars, and investors are seeking ever larger pools of capital.
Uploaded by Riza Shireen Koshy
