Qatari and Abu Dhabi sovereign wealth funds have joined a $20 billion fundraising round for Elon Musk’s artificial intelligence company xAI, reinforcing the Gulf’s growing role in backing global AI platforms.
The Qatar Investment Authority and Abu Dhabi-based technology investment firm MGX participated in the January Series E round, alongside investors including Nvidia, Cisco Investments and several US-based firms, xAI said in a statement. The fundraising exceeded an initial $15 billion target. Individual investment amounts were not disclosed.
Also Read: Brookfield and Qatar Launch $20B AI Venture to Transform Tech
Founded by Musk, xAI develops the Grok large language model, which is integrated into the social media platform X. The company stated that proceeds from the round will be directed toward expanding computing infrastructure, accelerating product deployment, and supporting research and development.
MGX was launched in 2024 by the Emirati artificial intelligence company G42, in partnership with Abu Dhabi’s sovereign wealth fund, Mubadala, with a mandate to channel capital into advanced AI technologies and scalable tech ventures.
Gulf investors have previously backed xAI. The Qatar Investment Authority invested $375 million in 2022 as part of Musk’s acquisition of X, formerly known as Twitter.
Musk has expanded several of his business interests in the Middle East, including infrastructure projects in Dubai through The Boring Company and satellite connectivity services via Starlink.
Why Qatar, Abu Dhabi Funds Matter to MENA
The participation of Qatar and Abu Dhabi funds in xAI’s $20bn funding round highlights the Middle East’s accelerating push to position itself as a global hub for artificial intelligence. Sovereign wealth fund backing signals long-term confidence in AI infrastructure, large language models and platform-scale innovation, aligning with regional strategies to diversify economies, attract advanced technologies and compete globally in next-generation digital sectors.
