Abu Dhabi's MGX closes $49 billion AI fund, among the largest ever raised

Abu Dhabi technology investment firm MGX said on Wednesday it has closed a $49 billion fund to back artificial intelligence companies, one of the largest investment vehicles ever focused on the sector.

The company said MGX Fund I exceeded its original $45 billion target. The capital was raised from institutional and private investors across the Gulf, North America, Asia, and Europe.

MGX said the fund was launched to provide "curated AI exposure through investments in differentiated and restricted opportunities across the AI technology stack." This includes semiconductors, AI infrastructure, and AI-enabling technologies and platforms.

Established in 2024, MGX is a private investment firm with Abu Dhabi's sovereign wealth fund Mubadala Investment Company and AI and cloud computing firm G42 as partners. It is chaired by Sheikh Tahnoon bin Zayed, Deputy Ruler of Abu Dhabi and National Security Adviser.

The fund has backed 14 companies so far. MGX co-led AI company Anthropic's $30 billion raise in February and participated in its $65 billion Series H in May. The firm also co-led OpenAI's $122 billion raise in March and took part in Elon Musk's xAI's $20 billion raise in January, before that company's merger with SpaceX.

The fund closed at a time of record investment in the sector. AI companies have raised $416.6 billion so far this year, according to data provider Dealroom, nearly doubling the amount raised in 2025. Anthropic and OpenAI have together taken the majority of that capital, and both count MGX as a significant backer.

MGX has also invested in physical AI infrastructure. In October 2025, it joined a consortium with BlackRock's Global Infrastructure Partners to acquire Aligned Data Centers in a deal valued at about $40 billion, one of the largest private equity digital infrastructure transactions on record. The firm is also co-developing what could become Europe's largest AI campus near Paris.

MGX has said it is targeting more than $100 billion in assets, investing across the full AI technology stack, including semiconductors, data centers, and foundation models.

The raise reflects a broader shift in how Gulf investors are approaching AI. Rather than relying only on state capital, MGX is raising third-party money and operating more like a global alternative asset manager, a model that could let it take part in larger transactions while widening its investor base.

The scale of investor demand comes despite some caution in public markets. Technology shares have wobbled as investors question whether AI valuations have outrun near-term profits. MGX's raise suggests large institutions still view AI infrastructure as a long-term strategic asset even as public markets grow more cautious.