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Abu Dhabi launches $100 billion tech investment firm MGX with focus on AI and semiconductors!


Abu Dhabi launches $100 billion tech investment

Abu Dhabi is making a significant move in the technology investment landscape by establishing a new firm that specializes in artificial intelligence and semiconductor investments. This initiative is set to create a substantial impact, with expectations of the firm managing assets exceeding $100 billion in just a few years.


This ambitious project has been revealed by individuals who are closely associated with the development but have chosen to remain anonymous due to the sensitivity of the information.


The newly formed company, known as MGX, was officially announced on a recent Monday. This venture is a collaborative effort between the Mubadala Investment Co., which is a sovereign wealth fund, and G42, a prominent AI firm as reported by Bloomberg.



Leadership for this new entity has been decided, with Ahmed Yahia Al Idrissi, currently leading the direct investment activities at Mubadala, stepping in as MGX's Chief Executive Officer. This leadership announcement was part of an official statement made by the involved parties.


At present, the investment portfolios of Mubadala and G42 will remain independent and unchanged. MGX, on the other hand, will start carving its own path in the investment world. This initiative will be supported initially through new capital injections from the Abu Dhabi government.


These plans and strategies were shared by the same individuals who have knowledge of the situation, preferring to stay unnamed due to the private nature of the details.


MGX's strategic approach includes a strong focus on forming partnerships with leading entities in three principal areas: AI infrastructure, semiconductor technology, and the core technologies and applications of AI. These targeted areas for collaboration and investment were disclosed by the same sources who have kept their identities confidential.



When approached for comments on this development, a representative for G42 did not provide an immediate response. Similarly, Mubadala, another key player in this venture, opted not to comment on the matter.


The governance structure of MGX includes prominent figures in its leadership. Sheikh Tahnoon bin Zayed Al Nahyan, who holds the position of the National Security Adviser for the United Arab Emirates, is appointed as the chairman of MGX. In addition, Khaldoon Al Mubarak, the CEO of Mubadala, will take on the role of vice chairman.


The board is further strengthened by the inclusion of notable individuals such as Jassem Al Zaabi, the vice chairman of the UAE Central Bank; Peng Xiao, CEO of G42; and Al Idrissi himself.

G42 has been a pivotal force in advancing AI technology within the UAE. Its track record includes significant partnerships, most notably with OpenAI, signaling a strategic move to expand its influence within the UAE and the broader regional landscape.



There were reports last year from Bloomberg about discussions between OpenAI and G42, focusing on securing funding for a new venture dedicated to chip technology.


This new venture is part of a vast economic empire controlled by Sheikh Tahnoon, who not only serves in a key national security role but is also the brother of the UAE's president.


This empire, valued at approximately $1.5 trillion, includes G42 as a significant component, highlighting the scale and influence of Sheikh Tahnoon's economic activities.


11.03.2024



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