Abu Dhabi-based investment firm MGX is considering raising up to US$25 billion from external investors to expand its investments in AI, according to sources familiar with the matter.

MGX, set up in 2023 with Mubadala Investment Co. and AI company G42 as founding partners, focuses on investments in AI infrastructure and is overseen by Sheikh Tahnoon bin Zayed Al Nahyan, the UAE’s national security adviser.

The firm is exploring a fund structure and may seek capital from both financial and strategic investors in Abu Dhabi and internationally, but no final decision has been made.

If MGX proceeds, it would be a rare example of a major Abu Dhabi entity seeking outside capital, as the city is typically known for exporting investment.

MGX has previously backed AI companies including OpenAI and Elon Musk’s xAI, and has partnered with BlackRock and Microsoft in a US$30 billion project to build data warehouses and energy infrastructure.

MGX declined to comment on the fundraising plans.

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🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ Abu Dhabi breaks with tradition by seeking external capital for AI ambitions

MGX’s plan to raise $25 billion externally represents a significant shift for Abu Dhabi, which controls nearly $1.8 trillion through its sovereign wealth funds and typically exports capital rather than seeking it.

The emirate’s sovereign wealth funds, including ADIA with $1.7 trillion in assets, historically operate as major global investors rather than fundraisers1.

This shift reflects the significant capital requirements of AI infrastructure investments, where even oil-rich nations recognize the need for risk-sharing and expanded resources.

The external fundraising approach mirrors recent precedent when Mark Walter’s investment firm took a minority stake in Mubadala’s asset management subsidiary earlier this year, marking only the second time an outside investor gained ownership of that entity.

2️⃣ MGX enters a hyper-competitive AI funding landscape with massive deal sizes

The potential $25 billion raise positions MGX among record-breaking AI investments, as private AI investment in the U.S. alone reached $109.1 billion in 2024 with generative AI attracting $33.9 billion2.

OpenAI’s recent $40 billion funding round, which boosted venture capital investment to $80.1 billion in Q1 2025, demonstrates the scale of capital now flowing into AI infrastructure34.

MGX’s strategy of backing multiple major players—including OpenAI and Elon Musk’s xAI—reflects the diversified approach needed in this rapidly evolving market.

The $30 billion partnership with BlackRock and Microsoft for data warehouses and energy infrastructure shows how AI investments increasingly require massive infrastructure commitments that exceed even sovereign wealth fund appetites for single projects.

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