In the Middle East, two influential nations are reported to be planning to tap into the Artificial Intelligence sector with substantial investments.
Abu Dhabi establishes AI investment firm, targets $100b AUM
Abu Dhabi is establishing a tech investment firm focused on artificial intelligence and semiconductors, aiming for over $100 billion in assets within a few years, Bloomberg reported on Tuesday.
The company is called MGX, and features Mubadala Investment Co. and AI firm G42 as founding partners. Ahmed Yahia Al Idrissi, CEO of Mubadala’s direct investments platform will helm the new firm as CEO.
Mubadala and G42 will maintain their current portfolios while MGX seeks its own investment opportunities. The firm will focus on securing partnerships in AI infrastructure, semiconductors, and core AI technologies and applications, the report says.
MGX marks a milestone for the United Arab Emirates’ AI sector as it wants to become a global authority in testing and regulating AI technology. The firm becomes part of Abu Dhabi’s array of wealth funds that have $1.5 trillion in sovereign wealth.
Mubadala, boasting assets worth $276 billion, is among the emirate’s three state-backed investors.
Meanwhile, G42 is under Sheikh Tahnoon’s $1.5 trillion empire and has been leading the UAE’s AI initiatives, including a partnership with OpenAI. This collaboration supports OpenAI’s expansion in the UAE and the region, with discussions on funding a new chip venture.
Saudi Arabia to set up a $40b AI fund
Saudi Arabia intends to establish a $40 billion fund for investing in artificial intelligence (AI), the New York Times reported on Wednesday. Discussions between Saudi Arabia’s Public Investment Fund (PIF) and leading venture capital firm Andreessen Horowitz, along with other investors, have been ongoing, although plans remain subject to change, the report says.
If realised, this tech fund would position Saudi Arabia as one of the world’s largest AI investors, underscoring the nation’s global economic aspirations and efforts to diversify its oil-dependent economy. The country is pursuing this project through its sovereign wealth fund which boasts assets exceeding $900 billion.
The New York Times report indicated that this new investment initiative is expected to launch in the second half of 2024. The fund could make Saudi and Andreessen Horowitz major players in AI-related sectors. Other venture capitalists may join in the fund as well, the report says.
