Abu Dhabi AI investor MGX is considering launching a fund to raise up to USD 25 bn to accelerate its investments in AI infrastructure, potentially making it among the largest of its kind globally, sources familiar with the matter told Bloomberg. The investment firm is exploring raising capital from financial and strategic investors, both in Abu Dhabi and in other locations.

MGX has plenty of funding commitments in its pipeline: The AI investor is contributing to the initial USD 100 bn phase of the Stargate AI infrastructure fund, a JV formed between OpenAI, SoftBank Group, Oracle, and MGX to invest in AI infrastructure. It is also pledging initial investments in the USD 30-50 bn planned data centers in France, and backing a USD 30 bn AI infrastructure fund launched by BlackRock and Global Infrastructure Partners. The AI investor is planning to invest USD 8-10 bn annually in AI infrastructure and companies, with a focus on the US market. It has a goal of reaching USD 100 bn in assets.

A play for external funding would signal a shift in the funding strategy of UAE state-owned entities. It’s rare for Abu Dhabi state-owned entities to raise external investments, though there have been signs that this could be changing. Mubadala received outside equity for the first time last year, when it acquired a 42% stake in Silver Rock Financial and brought in three new equity owners — Silver Rock CEO Carl Meyer, co-founder Michael Haberkorn, and M-Cor Capital. US-based investment firm TWG Global also acquired a 5% stake in Mubadala for USD 2.5 bn, with the option to increase its stake as the partnership evolves.

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