UAE President, US Commerce Secretary discuss MGX’s $30bn AI fund

Economic ties between the UAE and US took centre stage on Wednesday during high-level discussions in Washington.

UAE President His Highness Sheikh Mohamed bin Zayed Al Nahyan met with US Commerce Secretary Gina Raimondo to discuss expanding bilateral collaboration.

The meeting focused on the growing economic relationship, particularly in technology and trade, and also touched on MGX’s recent investments in the US AI sector.

Launched in March by Abu Dhabi’s AI council, MGX is backed by the UAE’s sovereign wealth fund Mubadala Investment and G42. The firm aims to accelerate AI and advanced technology adoption through partnerships in the UAE and globally.

The discussion highlighted MGX’s recent $30bn partnership with US companies, including BlackRock, Global Infrastructure Partners (GIP), and Microsoft. The Global AI Infrastructure Investment Partnership, as it’s called, aims to enhance AI infrastructure, build data centres, and develop energy projects in the US. Investments will be chiefly in the US and the remainder in its partner countries.

READ MORE: Abu Dhabi’s MGX, Microsoft, BlackRock partner to launch $30bn AI fund

The partnership is expected to mobilise up to $100bn in total investments, including debt financing, to fuel AI innovation, particularly in supply chains and energy sourcing. MGX will serve as a general partner, with Nvidia contributing expertise in AI chips.

AI investments, leadership

According to UAE news agency WAM, Sheikh Mohamed and Raimondo agreed that these AI investments are critical for driving future economic growth and sustainability. They explored the long-term impact of the partnership on the AI ecosystem and its role in shaping a more connected and prosperous future.

The UAE is positioning itself as a global AI leader, with major investments planned in infrastructure to meet growing demand. AI models, particularly those for deep learning and large-scale data processing, have significantly increased energy consumption, requiring specialised data centres. MGX’s investments are expected to play a pivotal role in meeting these demands.

Among those attending the meeting were H.H. Sheikh Tahnoun bin Zayed Al Nahyan, Deputy Ruler of Abu Dhabi and National Security Adviser, and Yousef Al Otaiba, UAE Ambassador to the US.

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