Abu Dhabi's MGX Considers $25 Billion AI Investment Fund
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Abu Dhabi's MGX Weighs Raising Billions for AI Investment Fund
Abu Dhabi-based MGX is considering plans to raise billions of dollars in third-party capital as it looks to ramp up investments in artificial intelligence, according to people familiar with the matter. The firm aims to raise money through a fund structure for investments in AI infrastructure, the people said, declining to be identified as the information is private. MGX could raise as much as $25 billion for the vehicle, making it among the world's largest entities of its kind, one of the people said.
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Abu Dhabi's MGX could raise up to $25 billion for AI fund, Bloomberg News says
Aug 5 (Reuters) - Abu Dhabi-based MGX is considering plans to raise as much as $25 billion in third-party capital as the investment group looks to ramp up its artificial intelligence holdings, Bloomberg News reported on Tuesday, citing people familiar with the matter. MGX declined to comment on the report and Reuters could not immediately verify it. Company executives are weighing raising money from financial and strategic investors in Abu Dhabi and beyond, but Mubadala Investment Co and AI firm G42 will remain MGX's main backers, the report said. No final decisions have been made, according to the report. MGX, which has invested in OpenAI and Elon Musk's xAI, is chaired by Sheikh Tahnoon bin Zayed Al Nahyan, the UAE's national security adviser and a brother of UAE President Sheikh Mohammed bin Zayed. The Financial Times reported last week that French AI startup Mistral is in talks with MGX and other investors to raise $1 billion at a valuation of $10 billion. Reporting by Dheeraj Kumar in Bengaluru; Editing by Mrigank Dhaniwala and Devika Syamnath Our Standards: The Thomson Reuters Trust Principles., opens new tab
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Abu Dhabi's MGX could raise up to $25 billion for AI fund: Report - The Economic Times
Company executives are weighing raising money from financial and strategic investors in Abu Dhabi and beyond, but Mubadala Investment and AI firm G42 will remain MGX's main backers, the report said.Abu Dhabi-based MGX is considering plans to raise as much as $25 billion in third-party capital as the investment group looks to ramp up its artificial intelligence holdings, Bloomberg News reported on Tuesday, citing people familiar with the matter. MGX declined to comment on the report and Reuters could not immediately verify it. Company executives are weighing raising money from financial and strategic investors in Abu Dhabi and beyond, but Mubadala Investment and AI firm G42 will remain MGX's main backers, the report said. No final decisions have been made, according to the report. MGX, which has invested in OpenAI and Elon Musk's xAI, is chaired by Sheikh Tahnoon bin Zayed Al Nahyan, the UAE's national security adviser and a brother of UAE President Sheikh Mohammed bin Zayed. The Financial Times reported last week that French AI startup Mistral is in talks with MGX and other investors to raise $1 billion at a valuation of $10 billion.
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Abu Dhabi-based MGX is exploring the possibility of raising up to $25 billion for an AI investment fund, signaling a major push in the artificial intelligence sector.
Abu Dhabi's MGX Explores Massive AI Investment Fund
Abu Dhabi-based MGX is considering an ambitious move to raise billions of dollars for a new artificial intelligence investment fund. According to sources familiar with the matter, the company is exploring the possibility of raising up to $25 billion in third-party capital, which would make it one of the world's largest entities of its kind
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Source: Economic Times
Fund Structure and Investment Focus
The proposed fund structure aims to attract investments specifically for AI infrastructure. MGX is weighing options to raise money from both financial and strategic investors, not only within Abu Dhabi but also from international sources
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. This move signals a significant push to expand MGX's artificial intelligence holdings and influence in the rapidly growing AI sector.Key Stakeholders and Leadership
Source: Bloomberg Business
While MGX is seeking external capital, it's important to note that Mubadala Investment Co and AI firm G42 will remain the main backers of MGX
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. The company is chaired by Sheikh Tahnoon bin Zayed Al Nahyan, who holds the position of national security adviser for the UAE and is a brother of UAE President Sheikh Mohammed bin Zayed2
. This high-level leadership underscores the strategic importance of the initiative for Abu Dhabi and the UAE.MGX's Current AI Investments
MGX has already made significant inroads in the AI industry, with investments in prominent companies such as OpenAI and Elon Musk's xAI
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. These existing investments demonstrate MGX's commitment to positioning itself as a major player in the global AI landscape.Potential Impact on the AI Ecosystem
If successful, this fund could have far-reaching implications for the AI industry. With up to $25 billion at its disposal, MGX would have the capacity to make substantial investments in AI infrastructure, potentially accelerating technological advancements and shaping the future of AI development
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Ongoing Negotiations and Future Prospects
While the plans for this massive AI fund are still under consideration, and no final decisions have been made, the mere possibility has attracted significant attention in the tech and investment communities
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. The scale of the proposed fund underscores the growing importance of AI in global investment strategies.Related Developments
In a separate but related development, French AI startup Mistral is reportedly in talks with MGX and other investors to raise $1 billion at a valuation of $10 billion
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. This further highlights MGX's active involvement in the AI startup ecosystem and its potential to influence the direction of AI innovation globally.As these plans unfold, the tech world will be watching closely to see how MGX's ambitious AI fund could reshape the landscape of artificial intelligence investments and development in the coming years.
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