Raking in $49 billion! Abu Dhabi's MGX creates one of the largest AI funds in history, doubling down on investments in models and computing power.

MGX has raised $49 billion for one of the largest general artificial intelligence (AI) trading funds ever, making this Abu Dhabi company, founded just two years ago, one of the most influential investors in the global industry. According to a statement released on Wednesday, the UAE-based company attracted investments from major institutions and private investors from the Middle East, North America, Asia, and Europe. The total amount raised exceeded the target of $45 billion. MGX has already deployed funds from this recently closed new fund. This highlights Abu Dhabi's efforts to transform its massive oil wealth into long-term impact on the technology expected to reshape the global economy. The emirate is rapidly emerging as one of the most prominent investors in the AI boom, with MGX at the core of these efforts, leveraging Abu Dhabi's financial strength and partnerships with leading tech companies to establish stakes in the most strategically significant assets in the industry. MGX is chaired by Sheikh Tanoon bin Zayed Al Nahyan and supported by Mubadala Investment Company and G42, which have rapidly built a portfolio covering cutting-edge AI models, semiconductor infrastructure, and data centers. It has invested in OpenAI and xAI, while also supporting global projects with BlackRock and Microsoft. As it heads towards its target of managing assets exceeding $100 billion, any new spending will be additional to the billions already deployed. To achieve this goal, it plans to invest up to $10 billion annually over the next few years. This new round of fundraising comes at a time of increasing competition for AI assets, with governments, sovereign wealth funds, and private equity firms all vying for investments in what many executives see as decisive technology cycles. Abu Dhabi positions itself at the center of this ecosystem, combining abundant capital, channels for low-cost energy, and close relationships with global tech leaders. Meanwhile, concerns about overinflated stock prices, particularly for companies spending billions on AI, have caused a stagnation in the rise of tech stocks in recent days. For MGX, attracting third-party funds will further differentiate it from traditional Gulf sovereign wealth funds that largely deploy government funds. The company was designed from the start to be more like a global alternative asset management firm, raising institutional funds while co-investing with its Abu Dhabi sponsors. This model allows it to pursue larger transactions, expand its investor base, and potentially move towards its long-term ambitions. With the cost of developing cutting-edge AI systems continuing to rise, this new funding will provide MGX with additional ammunition. Training models and building the data centers and semiconductor infrastructure needed to support them increasingly require expenditures in the hundreds of billions, prompting investors to seek larger pools of funds.