Abu Dhabi‘s prominence in the global technological landscape has been reaffirmed with the launch of MGX, a pioneering global technology investment company aimed at spearheading advancements in artificial intelligence (AI). Led by heavyweight partners Mubadala Investment Co. and G42, MGX sets its sights on surpassing $100 billion in assets under management.
Ahmed Yahia Al Idrissi, Chief Executive Officer of Mubadala’s direct investments platform, will lead MGX as its CEO, steering the company towards strategic investments in AI infrastructure, semiconductors, and core AI technologies and applications.
This ambitious venture aligns with Abu Dhabi’s commitment to shaping the trajectory of cutting-edge technologies on a global scale. Under the guidance of UAE National Security Adviser Sheikh Tahnoon bin Zayed Al Nahyan and Mubadala CEO Khaldoon Al Mubarak, MGX is poised to capitalize on emerging opportunities in the AI sector, with a diverse board of directors ensuring strategic vision.
Simultaneously, OpenAI‘s pursuit of in-house semiconductor chip production to power high-level AI models has attracted interest from Abu Dhabi. According to a Financial Times report published on March 15, MGX is in discussions to fund OpenAI’s semiconductor venture, potentially reducing reliance on current industry leader Nvidia. This move aligns with OpenAI’s strategy to secure trillions of dollars in investments globally and reduce dependency on external technologies.
As a part of its funding efforts, OpenAI entered into an agreement with Thrive Capital in February 2023 to sell shares in the company, resulting in a reported valuation surge to over $80 billion. This represented nearly a threefold increase in less than 10 months.
G42 had already entered into a partnership with OpenAI in October 2023 as part of the company’s expansion into the Middle East. OpenAI CEO Sam Altman said during the G42 partnership deal that they plan to bring AI solutions to the Middle East that “resonate with the nuances of the region.”
The discussions between OpenAI and MGX highlights Abu Dhabi’s growing role in shaping the future of AI technology. With initiatives like the dedicated free zone in Ras Al Khaimah supporting companies in digital assets, blockchain, and AI, the UAE solidifies its position as a global leader in emerging technologies.
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