Tuesday, March 19, 2024

ICYMI: "Abu Dhabi Targets $100 Billion AUM for AI Investment Firm"

Probably the reason OpenAI's Sam Altman was in the UAE talking about raising $7 trillion for chips and cheese or something. A big ask in anybody's book.

Here's hoping it doesn't become another SoftBank Vision Fund which was the same $100 billion size and for the first few years of its life mainly succeeded in jacking up the price of speculative private investments before roller-coastering into a profitable position this year.

Abu Dhabi had a hand in that one and went on one heck of a ride with Mr. Son.

From Bloomberg, March 11:

  • The new firm, MGX, will target deals in AI and semiconductors
  • Mubadala and AI firm G42 named as MGX’s foundational partners

Abu Dhabi is setting up a technology investment firm targeting deals in artificial intelligence and semiconductors that could surpass $100 billion in assets under management in a few years, according to people familiar with the matter.

The company, called MGX, will count sovereign wealth fund Mubadala Investment Co. and AI firm G42 as founding partners. Ahmed Yahia Al Idrissi, who’s chief executive officer of Mubadala’s direct investments platform, will serve as the new entity’s CEO, according to a statement.

Mubadala and G42’s portfolios will for now remain as they are, with MGX pursuing its own deals initially funded by Abu Dhabi’s government, said the people, who asked not to be identified as the matter is private. The entity will pursue the best partners across its three main verticals — AI infrastructure, semiconductors as well as AI core technologies and applications, they said.

The decision to set up MGX adds to the United Arab Emirates’ growing push into the sector. The Gulf country, of which Abu Dhabi is the capital, aims to become a global leader in testing and regulating AI technology, officials have said.

MGX will be chaired by UAE National Security Adviser Sheikh Tahnoon bin Zayed Al Nahyan, with Mubadala CEO Khaldoon Al Mubarak acting as its vice chairman. Board members include UAE Central Bank Vice Chairman Jassem Al Zaabi, G42 CEO Peng Xiao and Al Idrissi.

Abu Dhabi Wealth Funds
The firm joins a constellation of wealth funds in Abu Dhabi, one of the few cities globally to manage about $1.5 trillion in sovereign wealth. Mubadala, with assets of $276 billion, is one of the emirate’s three state-backed investors....


You could maybe dismiss all this as just a passing fad except for this tidbit, also at Bloomberg:
Abu Dhabi Speeds Up Country Club Admissions to Lure Hedge Funds