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.
“With the launch of MGX, we are entering a new era where Abu Dhabi is not only a global technology leader, but also shaping the AI roadmap of the world,” Xiao said. Mubadala declined to comment.
G42, part of a $1.5 trillion empire controlled by Sheikh Tahnoon, has been at the forefront of the country’s AI efforts. Its partnerships include one with OpenAI, which is teaming up with the Gulf firm as part of an expansion within the UAE and the broader region. OpenAI has held discussions with G42 to raise funding for a new chip venture, Bloomberg reported last year.
It’s now paring back its presence in China and has pledged to invest in Western markets to assuage US concerns over ties to Beijing, CEO Xiao told Bloomberg News last month. G42 will focus on deploying capital in the US and other markets where its key AI partners operate, Xiao had said.
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Published: 12 Mar 2024, 04:52 PM IST
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