Potential Capital Gathering of $25 Billion for AI-focused Ventures by Abu Dhabi's MGX
MGX Aims for $25 Billion AI Fundraising, Bolstering Global AI Presence
Abu Dhabi-based investment group MGX is planning to raise up to $25 billion in third-party capital to significantly expand its artificial intelligence (AI) holdings, according to recent reports. This potential fund would be one of the largest AI investment vehicles globally and aims to invest in AI infrastructure and startups worldwide.
MGX's current key backers include Mubadala Investment Co and AI firm G42. However, the group is exploring raising money from additional financial and strategic investors both within Abu Dhabi and internationally. No final decisions have been made yet.
One such potential investment could be French AI startup Mistral, which is reportedly in talks with MGX and other investors to raise $1 billion at a valuation of $10 billion. This indicates MGX's interest in backing promising AI startups alongside its broader investment strategy.
MGX's AI portfolio already includes major players such as OpenAI and Elon Musk’s xAI, reinforcing its strategic positioning in the AI sector. The fundraising plan aligns with the UAE’s ambition to establish itself as a leading hub for artificial intelligence innovation.
The details of this development reflect the latest updates as of early August 2025. However, MGX declined to comment on the report, and Reuters could not immediately verify it. The report from Bloomberg News was based on information from people familiar with the matter.
MGX is chaired by Sheikh Tahnoon bin Zayed Al Nahyan, the UAE’s national security adviser and a brother of UAE President Sheikh Mohammed bin Zayed. The investment group is looking to increase its artificial intelligence holdings and is considering plans to raise up to $25 billion in third-party capital.
As the crypto industry gathers in Dubai, with Trump euphoria subsiding, it remains to be seen how MGX's potential $2 billion investment in Binance using a Trump-linked stablecoin will impact the landscape. Meanwhile, Mubadala Investment Co and AI firm G42 will remain MGX’s main backers.
In other news, Prosus aims to expand its $6.5-billion India portfolio by five-fold, while PedalStart has made soft commitments in six firms. SenseAI Ventures has secured a key domestic Limited Partner for its maiden fund, and Repello AI, Iom Bioworks, and PlutoPe have received funding.
These developments underscore the ongoing growth and investment in the AI sector, with players like MGX playing a significant role in shaping its future.
- MGX is looking to increase its artificial intelligence holdings by considering plans to raise up to $25 billion in third-party capital, which would make its fund one of the largest AI investment vehicles globally.
- The AI portfolio of MGX includes major players such as OpenAI and Elon Musk’s xAI, demonstrating its strategic positioning in the AI sector, and indicating its interest in backing promising AI startups like French AI startup Mistral.
