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Damac ramps up AI investments: Dubai-based conglomerate Damac Group ’s family office invested in three AI startups abroad and has earmarked USD 1 bn through its digital unit Edgnex for investments in data centers as part of its latest AI push, according to a press release (pdf).
The breakdown: Damac invested some USD 50 mn into US AI startup Anthropic by acquiring an undisclosed stake from crypto b’naire Sam Bankman-Fried’s bankrupt crypto exchange, FTX, earlier this year; and invested undisclosed sums in Elon Musk’s xAI and Paris-based AI startup Mistral. Damac also allocated funds in more than 70 funds across multiple investment strategies.
REMEMBER- Damac is not the only UAE investor backing Anthropic: Mubadala bought a USD 500 mn stake in the startup from FTX back in March, making it the biggest buyer in a consortium of buyers snapping up two-thirds of FTX’s 8% stake in the company. The company, currently owned by now-defunct FTX and backed by major players like Amazon and Google, is being sold for more than USD 1 bn to settle FTX’s debts.
Data centers are on its radar: The conglomerate also said in June that it plans to invest USD 1 bn in data centers through its digital unit Edgnex over the next couple of years in response to the global demand for digital infrastructure.
ICYMI- Edgnex is building USD 600 mn data centers in Saudi Arabia in Dammam and Riyadh, slated to go online next year. Edgnex also signed an MoU with Salam, Cinturion, and Jeddah’s Emaar, the Economic City to develop a digital infrastructure hub in the city. The company also earmarked USD 100 mn alongside telecoms operator Vodafone Turkey to establish a new 6 MW data center in Izmir, Turkey, also set to go online next year.
Damac wants to ride the AI wave, “Our increased investment in AI reflects our commitment to supporting the development of groundbreaking technologies that can drive significant progress and create new opportunities across various sectors,” Damac founder Hussain Sajwani said.
