The UAE's AI fund MGX is one of the latest investors in OpenAI's funding round, expected to value the company at $150 billion. While few venture capital funds can rival tech giants like Microsoft and Amazon, Middle Eastern sovereign wealth funds have the financial strength, thanks to rising energy revenues. The Gulf Cooperation Council's wealth is projected to grow from $2.7 trillion to $3.5 trillion by 2026, according to Goldman Sachs.
Saudi Arabia's Public Investment Fund (PIF), valued at over $925 billion, has been investing heavily in AI as part of Crown Prince Mohammed bin Salman's "Vision 2030" plan. The UAE's Mubadala, managing $302 billion, and Qatar's Investment Authority with $475 billion, are also key players in AI investments.
MGX recently partnered with BlackRock, Microsoft, and others to raise up to $100 billion for AI infrastructure. Mubadala, a major backer of OpenAI rival Anthropic, is among the most active AI investors.
Saudi Arabia's PIF is also in talks for a $40 billion partnership with Andreessen Horowitz and launched an AI-specific fund, SCAI. However, Saudi Arabia's human rights record, including the 2018 killing of journalist Jamal Khashoggi, remains a concern for some Western partners.
Globally, other sovereign wealth funds, like France's Bpifrance and Singapore’s Temasek, are also heavily investing in AI. However, some investors worry about inflated valuations similar to SoftBank's Vision Fund's impact on companies like WeWork. The U.S. prioritizes Middle Eastern funds investing in American companies rather than adversaries like China.
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