Abu Dhabi’s tech investment powerhouse MGX is reportedly in talks to pour \$1 billion into Paris-based AI startup Mistral, according to the Financial Times. The round may also see participation from other major VC firms.
If the deal goes through, Mistral’s valuation would rise to $10 billion from just \$6.7 billion previously.
The fresh capital is expected to help roll out its chatbot **Le Chat** commercially and boost the development of its open-source large language models (LLMs).
A European Challenger to ChatGPT and Gemini
Founded in 2023, Mistral has quickly positioned itself as a serious contender in the AI arms race, going head-to-head with U.S. giants like OpenAI (ChatGPT) and Google (Gemini).
The company’s focus on open-source models has drawn global attention and now, potentially, a significant Middle Eastern backer.
Just last June, Mistral raised €600 million (\$696 million) to build a new data center near Paris. And in a broader strategic move, France and the UAE inked a framework agreement in February 2025 to build a 1-gigawatt AI-focused data center, estimated to attract \$30–50 billion in investment.
MGX’s Growing AI Investment Footprint
This wouldn’t be MGX’s first AI bet. The firm joined OpenAI’s funding round back in October 2024.
Since its launch in March 2024, MGX, backed by sovereign wealth fund Mubadala and AI company G42, has taken bold strides into the AI investment space.
In September, MGX joined a $30 billion Global AI Infrastructure Investment Partnership alongside BlackRock, Global Infrastructure Partners, and Microsoft. The initiative plans to build the backbone of future AI capabilities, data centers and energy infrastructure.
What This Means for Tech Startups in MENA
MGX’s aggressive investments signal more than just capital movement, they reflect a long-term strategy to embed the UAE and the wider MENA region at the heart of global AI innovation.
For MENA-based tech startups, this is promising news. Here’s why:
- Capital Access: More funding rounds from MGX and similar vehicles could mean better access to growth capital for AI-driven startups in the region.
- Infrastructure Growth: With the UAE investing in global AI infrastructure, MENA startups will benefit from improved cloud, data center, and compute power availability.
- Talent Magnet: Collaborations with European and American AI firms could spark reverse brain drain, pulling top talent back into the region.
- Innovation Ecosystem: Mistral’s open-source approach could open doors for co-development and integration with startups working on niche AI solutions, especially in healthcare, finance, and Arabic-language NLP.
As MGX continues to expand its global portfolio, the ripple effect across the MENA tech ecosystem is hard to ignore. For early-stage AI founders, the signal is clear: the time to scale and align with regional visionaries is now.
