Abu Dhabi's MGX raises $49 billion for one of the world's largest AI-focused funds

Investment company MGX from Abu Dhabi has raised $49 billion for one of the largest AI-focused funds in history, aimed at deals in the field of artificial intelligence — reported by Bloomberg. In just two years of operation, the firm has entered the ranks of the most influential AI investors in the world.

What is known about MGX

MGX is an investment structure created in Abu Dhabi in 2024 with the support of state funds of the United Arab Emirates. The company quickly established itself as one of the largest institutional investors specializing precisely in AI deals: data center infrastructure, chips and capital-intensive rounds of leading laboratories. MGX was one of the co-founders of a global alliance for AI infrastructure financing, announced in 2024 jointly with BlackRock, Microsoft and Global Infrastructure Partners — this alliance is aimed at financing data centers and energy capacities necessary for training and operating large models.

Why such a large fund is needed

The race for leadership in generative AI requires unprecedented capital investments: the world's largest technology companies spend tens of billions of dollars annually on building data centers, purchasing chips and hiring researchers. Traditional venture capital is physically unable to meet the industry's needs for such sums, so state sovereign wealth funds are increasingly entering the game — they have capital comparable in scale to the budgets of entire industries.

• New MGX fund — $49 billion, one of the largest in history aimed at AI deals
• Company founded in Abu Dhabi in 2024
• In just two years MGX entered the ranks of key global AI investors
• MGX — one of the co-founders of the AI infrastructure financing alliance along with BlackRock and Microsoft

How MGX is already present in the AI industry

Beyond participation in infrastructure alliances, MGX was previously mentioned among investors in rounds of leading AI laboratories — such as OpenAI and Elon Musk's xAI startup. The new $49 billion fund will apparently allow the company to expand its deal portfolio and claim participation in even larger rounds of future AI giants.

MGX's activity fits into the broader strategy of Abu Dhabi to transform the emirate into one of the world's centers of the AI industry: there is already a developing G42 laboratory and Mohamed bin Zayed University of Artificial Intelligence, and American partners are discussing the construction of large data centers on the emirate's territory. For a region whose economy has historically been built on oil, betting on AI infrastructure is a way to diversify income sources for decades to come.

What this means

Capital inflow from the Persian Gulf in volumes comparable to the budgets of entire states is changing the balance of power in financing the AI industry: alongside traditional venture funds from Silicon Valley, sovereign investors from Abu Dhabi are increasingly establishing themselves, for whom betting on AI has become part of a long-term state strategy.