Abu Dhabi's MGX closes $49 billion AI fund, one of the largest ever raised

Abu Dhabi investment firm MGX has closed its first fund at $49 billion, exceeding an initial $45 billion target and ranking among the largest AI-focused funds ever raised. The close, reported July 1, 2026, cements Gulf capital as a central source of money for frontier AI labs and the data centers that run them.

MGX was founded in 2024 by Abu Dhabi’s Mubadala Investment Company and the AI and cloud firm G42, and is chaired by Sheikh Tahnoon bin Zayed, the emirate’s deputy ruler and national security adviser. Fund I drew institutional and private investors from the Gulf, North America, Asia and Europe.

The firm has already spread that money across the industry’s biggest names. Since inception it has invested in 14 companies, co-leading OpenAI’s $122 billion raise in March 2026, co-leading Anthropic’s $30 billion round in February and joining its $65 billion Series H in May, and taking part in xAI’s $20 billion raise in January. Beyond the model labs, MGX backed a $40 billion acquisition of Aligned Data Centres, a $2 billion investment in Binance, the TikTok-USDS joint venture, and a planned 3-gigawatt AI compute buildout that includes a campus near Paris.

The scale carries concentration risk. A single state-linked fund now holds positions across three of the most valuable US AI developers at once, tightening the financial links between American frontier labs and an Abu Dhabi vehicle chaired by a senior national security official – ties that have already drawn scrutiny in Washington over technology transfer.

Whether MGX’s next moves lean further into compute and power infrastructure, or double down on the model labs, will show where Gulf money sees the returns.