Abu Dhabi's MGX Considers Raising $25 Billion for AI Investment Fund

Abu Dhabi-based MGX is considering raising billions of dollars for an AI investment fund, aiming to raise up to $25 billion. The firm plans to tap into third-party capital, including global investors, to invest in AI infrastructure. MGX is overseen by Sheikh Tahnoon bin Zayed Al Nahyan, a key player in the UAE's AI push, and has already backed OpenAI, xAI, and BlackRock's data warehouse plan.

Abu Dhabi-based MGX is considering raising billions of dollars for an AI investment fund, aiming to raise up to $25 billion. The firm plans to tap into third-party capital, including global investors, to invest in AI infrastructure. MGX is overseen by Sheikh Tahnoon bin Zayed Al Nahyan, a key player in the UAE's AI push, and has already backed OpenAI, xAI, and BlackRock's data warehouse plan [1].

The move comes as top AI startups increasingly turn to the Middle East for funding to cover the significant costs of developing new models. In a recent development, Anthropic, known for its responsible AI development, is in talks with Qatar's sovereign wealth fund, the Qatar Investment Authority (QIA), to participate in a megaround that would value the startup at $170 billion [1].

The trend reflects a stark new reality in Silicon Valley, where top AI startups need more money than traditional venture investors can provide to build cutting-edge artificial intelligence models. This is evident in the case of OpenAI, which has reportedly held talks with Saudi Arabia's sovereign wealth fund [1].

Adding to the challenge is the growing pressure from Big Tech firms like Meta and Google, which can finance their AI investments from lucrative online advertising businesses. However, for private, unprofitable AI companies, securing billions of dollars annually for talent, chips, and data centers is a daunting task.

Meanwhile, cybersecurity giant Palo Alto Networks has announced a $25 billion acquisition of CyberArk Software, aiming to enhance its cybersecurity offerings in the face of growing AI-driven threats. The deal, expected to close in fiscal 2026, will expand Palo Alto's identity security tools and appeal to large enterprise customers [2].

These developments highlight the significant capital needs of AI startups and the growing importance of Middle East investment funds in meeting these needs. Whether MGX and other startups will succeed in raising the required funds remains to be seen.

References:

[1] https://www.bloomberg.com/news/newsletters/2025-07-31/anthropic-joins-openai-xai-in-seeking-funds-from-middle-east
[2] https://theoutpost.ai/news-story/palo-alto-networks-to-acquire-cyber-ark-for-25-billion-strengthening-ai-era-cybersecurity-18415/