UAE-based AI fund MGX is reportedly gearing up to raise $25 billion as part of a bold expansion into artificial intelligence and semiconductor deals.
The move is expected to significantly scale its global footprint and push its assets under management (AUM) toward the $100 billion mark in the coming years.
Founded in 2024 by the government of Abu Dhabi, MGX is a joint initiative between Mubadala Investment Company and AI powerhouse G42, which is backed by the UAE government and private-sector tech players, including Microsoft.
The fund is chaired by Sheikh Tahnoon bin Zayed Al Nahyan, with Khaldoon Al Mubarak, CEO of Mubadala, serving as vice chairman.
According to Bloomberg, the new capital will be raised through a structured fund, with support expected from both financial and strategic investors in Abu Dhabi and across global markets.
MGX Eyes Global AI and Semiconductor Deals
MGX has already been making major moves in the AI space. This week, the Financial Times reported that French AI startup Mistral is in talks to raise $1 billion from MGX and other VCs.
In September 2024, MGX joined the $30 billion Global AI Infrastructure Investment Partnership, a coalition focused on building critical AI-related infrastructure such as data centers and energy systems, in partnership with BlackRock, Microsoft, and others.
MGX’s growing influence in global AI funding carries powerful implications for startups across the MENA region:
- Access to Mega-Funding Channels: Startups aligned with AI, data infrastructure, or semiconductor innovation can position themselves for downstream investment or acquisition opportunities.
- Gulf-Backed Global Vision: MGX’s capital strategy shows that the UAE is not just importing innovation, it’s exporting capital and vision, opening doors for local startups to plug into international markets.
- Institutional Confidence in AI: The scale of this fund signals that AI is no longer a niche vertical, it’s becoming central to long-term economic planning across the Gulf.
- Foundational Infrastructure for Scale: As MGX builds and backs global data centers and AI infrastructure, MENA-based startups will benefit from better compute access, energy efficiency, and cloud capabilities.
For AI founders in the region, the message is clear: the Gulf is going all-in on AI, and there’s never been a better time to innovate locally while scaling globally.
