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

Abu Dhabi investment firm MGX has raised $49 billion for one of the largest funds ever dedicated to artificial intelligence deals. The haul puts the company, founded just two years ago, among the most influential AI investors in the world.

How much did MGX raise, and what does it mean?

Bloomberg calls the $49 billion fund one of the largest ever created specifically for AI deals. For comparison, most venture and sovereign AI funds announced over the past two years have been measured in the tens of billions of dollars and have rarely come close to this mark in a single tranche.

• Fund size: $49 billion
• MGX has existed for only about two years
• According to Bloomberg, the fund is one of the largest ever dedicated to AI deals
• The company is headquartered in Abu Dhabi, UAE

Who is behind MGX?

MGX is an investment platform set up in Abu Dhabi with the participation of the state holding company Mubadala Investment Company. It is chaired by Tahnoun bin Zayed Al Nahyan, the UAE's national security adviser and one of the emirate's most powerful figures in technology investment. Beyond MGX, Tahnoun oversees other AI- and technology-related entities; together they make up one of the world's largest investment portfolios affiliated with the UAE state. In its two years, MGX has already co-invested in a number of major global AI deals, from data center infrastructure partnerships to funding rounds for leading labs building large language models.

MGX has already appeared in several high-profile AI deals. In 2024, the fund co-invested in one of OpenAI's rounds and joined the AI Infrastructure Partnership alongside Microsoft, BlackRock, and Nvidia. In early 2025, it was named among the participants in the announced Stargate project to build data centers in the US. The new $49 billion tranche lets the company keep pursuing this strategy of co-investing in the world's most capital-intensive AI projects.

Why is the money going into AI infrastructure?

The rush of AI capital spending over the past two years stems from a shortage of compute: demand from labs and corporations for training and inference of large models is growing faster than new data centers can be built and chips manufactured. Persian Gulf sovereign funds, sitting on large capital reserves from oil revenue, have become some of the most active players in this race. They fund not only the models themselves but also the physical infrastructure: power supply, cooling, and the construction of data center campuses.

In terms of capital raised, the MGX fund is comparable to the largest technology funds of the past decade, such as Japanese SoftBank's Vision Fund, and exceeds most of the sovereign venture initiatives Gulf states have launched in previous years. The UAE as a whole has consistently positioned itself as a global AI hub: the country is developing its own family of open Falcon models through the Technology Innovation Institute (TII), and Emirati company G42 has built partnerships with Microsoft and other Western tech giants. The new fund reinforces this strategy, giving Abu Dhabi another lever of influence in the global market for AI capital.

What it means

MGX's $49 billion fund cements Abu Dhabi's status as one of the key capital centers for the global AI industry, on par with Silicon Valley and the largest US investment funds.