Abu Dhabi MGX Closes $49 Billion AI Fund

Abu Dhabi's MGX has closed a $49 billion fund dedicated to artificial intelligence, marking one of the largest single-sector investment vehicles ever assembled. The fund, which exceeded its original $45 billion target, was finalized in recent weeks and announced on July 1. It draws capital from institutional and private investors across the Middle East, North America, Asia, and Europe, propelling the two-year-old firm to the forefront of global AI finance.

MGX, formed in March 2024 through a partnership between Abu Dhabi sovereign wealth pillars Mubadala and G42, plans to invest across the entire AI technology stack. This includes equity in frontier AI labs, semiconductor infrastructure, and data centers. The firm has already built a significant portfolio, having participated in major financing rounds for leading AI companies including OpenAI, Anthropic, and xAI. It is also involved in large-scale infrastructure projects, such as a partnership in France and the global Stargate data center initiative.

The fund's closure underscores a broader strategic shift as Gulf states leverage oil wealth to secure long-term influence in the defining technology sector. However, MGX's approach...