Abu Dhabi-based MGX is reportedly exploring plans to raise as much as $25 billion in third-party capital to expand its artificial intelligence (AI) investments. The firm aims to establish a fund focusing on AI infrastructure, including data centers and supporting power infrastructure, to meet growing demand for computing power. MGX is considering funding from financial and strategic investors both locally and internationally. Despite potential new fundraising, Mubadala Investment Co and AI firm G42 are expected to remain MGX’s principal backers. No final decisions on the fundraising have been made.
MGX, launched in March 2024, is an AI-focused investment vehicle with sovereign wealth fund Mubadala and AI company G42 as its founding partners. The firm has invested in prominent AI companies such as OpenAI and Elon Musk’s xAI. Additionally, French startup Mistral is reportedly in discussions with MGX and other investors to raise $1 billion, potentially valuing the company at $10 billion.
The establishment of MGX underscores Abu Dhabi’s commitment to becoming a global leader in AI technology and infrastructure. The potential $25 billion fund would position MGX among the world’s largest AI investment entities, reflecting the UAE’s strategic push to diversify its economy and invest in cutting-edge technologies.
