Lunate is reportedly considering a major investment into Artificial Intelligence (AI). The Abu Dhabi-based asset manager firm is potentially looking at pouring in $1 billion into MGX, the state-backed investment company that is also located in the capital of the UAE.
The discussions around this potential deal are still underway, Bloomberg reported on Monday, November 24 citing sources familiar with the matter. A final agreement, however, is yet to be reached in the matter.
Lunate explains itself as an “alternative investment manager” and claims to have assets worth $110 billion under its management. MGX, meanwhile, is a joint collaborative venture between Abu Dhabi’s sovereign wealth fund, Mubadala and AI holding company G42.
In recent times, MGX has wired investments into AI mammoths, establishing its foothold as a prominent AI investor. Last year, MGX joined Nvidia in bringing an investment worth $6.6 billion in OpenAI. Additionally, the firm has also become an investor in Elon Musk’s xAI platform – leaving a strong imprint in U.S.’ AI ecosystem.
MGX is among tech giants that have come together to fund U.S.’ ambitions Stargate Project that aims to make the country the AI capital of the world. It has committed to invest $7 billion into this project. A billion dollar cheque from Lunate, under the circumstances, will clearly be a financial boon for MGX.
As far as Lunate is concerned, the company is among established venture firms from the UAE that are working to elevate the country’s position in the global AI landscape. For now, the official confirmation or denial regarding Lunate’s investment into MGX is currently pending a release date
As of August this year, Abu Dhabi’s AI sector had clocked a YoY growth of 61 percent. Data by the Abu Dhabi Chamber, at the time, had shown that the emirate had become home to 673 AI firms, with more firms looking to enter the Emirate.