Middle East Invest into AI have become essential supporters of Silicon Valley’s artificial intelligence (AI) organizations. Countries like Saudi Arabia, the United Arab Emirates (UAE), Kuwait, and Qatar are rich in oil however are seeking to put money into technology to diversify their economies. According to Pitchbook, investment from Middle Eastern sovereign funds in AI corporations has grown five times during the last year.
One new AI fund from the UAE, called MGX, is among those interested in investing in OpenAI, which could soon be valued at $150 billion, sources told CNBC. These Middle Eastern funds have large amounts of money, often much more than traditional venture capital firms, so they can easily invest in AI companies.
This money comes from their governments, which have benefited from high energy prices. According to Goldman Sachs, the wealth of Gulf Cooperation Council (GCC) countries is expected to increase from $2.7 trillion to $3.5 trillion by 2026.
The Saudi Public Investment Fund (PIF), really worth over $925 billion, is a major player on this area. As a part of Crown Prince Mohammed bin Salman’s Vision 2030 initiative, the PIF has invested in organizations like Uber and in sports activities, which include LIV Golf and professional soccer.
The UAE’s Mubadala fund manages $302 billion, and the Abu Dhabi Investment Authority controls $1 trillion. Meanwhile, Qatar’s fund holds $475 billion, and Kuwait’s fund has greater than $800 billion.
This week, MGX, the Abu Dhabi-based AI fund, partnered with businesses like BlackRock, Microsoft, and Global Infrastructure Partners to raise up to $one hundred billion for AI infrastructure initiatives, which includes statistics facilities. Launched in March, MGX become founded with support from Mubadala and G42, an AI firm.
Mubadala is also backing OpenAI competitor Anthropic and has completed eight AI investments in the last four years. Anthropic, however, chose not to accept money from Saudi Arabia due to national security concerns.
Saudi Arabia’s PIF is likewise discussing a $40 billion partnership with U.S. Assignment company Andreessen Horowitz and has launched its personal AI fund called the Saudi Company for Artificial Intelligence (SCAI). However, worries about Saudi Arabia’s human rights file, such as the 2018 killing of journalist Jamal Khashoggi, have raised worries for some Western agencies.
Beyond the Middle East, nations like France and Singapore also are making an investment heavily in AI, contributing to the short-growing AI funding landscape.
