UAE MGX raises half of its $100 billion AI fund

Abu Dhabi’s backed MGX AI Fund has already raised half of its $100 billion fund for AI investments according to a recent Bloomberg report.

As per the report, the funds were raised from regional wealth funds and global investors as Abu Dhabi aims to use AI to support its economic diversification strategies.

MGX was launched in 2024 and is chaired by Sheikh Tahnoon bin Zayed, the UAE’s national security adviser. It was initially backed by two other Abu Dhabi funds, Mubadala and G42, and has already invested in funding rounds for OpenAI, xAI, and Anthropic.

Investors are said to include sovereign wealth funds, pension funds and major institutional investors, marking one of the largest capital raises ever dedicated to the AI sector.

MGX already holds strategic stakes in major frontier AI companies, including OpenAI, Anthropic, and Elon Musk’s xAI. It has also partnered with global players such as BlackRock, Microsoft, and Nvidia.

MGX is actively deploying large-scale investments into global AI infrastructure. The firm is also exploring multi-billion-dollar acquisitions in Asia, such as a potential deal for Singapore-based data center operator DayOne.

MGX has already deployed capital from the new fund, which closed in recent weeks, the people said. It ranks as one of the biggest ever dedicated AI investment vehicles ever, and marks the first time Abu Dhabi, historically an exporter of capital — has leaned on its vast network to raise money at this scale.

A representative for MGX declined to comment.

In 2025, MGX made a $2 billion investment into Binance, the biggest investment to date in a crypto exchange as part of its AI strategy, showcasing the close connection between Agentic AI and crypto.