Abu Dhabi AI Firm Opens $10 Billion Fund for Tech Deals
G42, an Abu Dhabi-based firm for artificial intelligence, has been backed by a member of the ruling family of the oil-rich Emirate. It is creating a $10 billion fund that focuses on technology investments in emerging countries.
This entity will be created in partnership with Abu Dhabi Growth Fund, which was established by the state-controlled ADQ last January. G42 and ADQ form part of an empire managed by Sheikh Tahnoon bin Zayed, United Arab Emirates’ national security advisor.
G42 Expansion Fund targets late-stage growth companies that have disruptive technologies. It will be a private equity investor and a large portion of its funds will be earmarked in high-growth areas, including communications, smart mobility, renewables, healthcare, and other sectors.
Abu Dhabi, a city with more than $1 trillion in sovereign wealth capital, is increasing its efforts to diversify its economy and pump oil revenue into technology sectors. Mubadala Investment Co. is an Abu Dhabi wealth fund, which owns a minor stake in G42. has also stepped in in order to invest in this sector in light of a recent downturn.
G42, for its part, has been expanding its investment team through key hires made from Abu Dhabi sovereign funds in the past year. Silver Lake, a US private equity firm, invested in the company last year. Egon Durban is its Chief Executive Officer. Durban stated that the new fund was “an important milestone in UAE’s growth in the technology ecosystem.”
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