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State-backed investment firm MGX participated in OpenAI’s latest USD 6.6 bn funding round, which also received backing from Microsoft, Nvidia, and Josh Kushner’s Thrive Capital in what is one of the largest private investment transactions ever, Bloomberg reports. The funding round gives the ChatGPT maker a valuation of USD 157 bn.
We knew this was coming: We got wind of MGX’s potential backing of OpenAI’s funding round earlier in September, shortly after which it also backed a major new AI infrastructure fund launched by BlackRock and Global Infrastructure Partner, joining as a general partner.
What we know: The exact investment provided by MGX has not been disclosed, but reports say that some of the funding was invested through special purpose vehicles, where investors pooled money from several backers to buy a portion of the shares.
Background: MGX was formed in March by the Artificial Intelligence and Advanced Technology Council to ramp up the development and adoption of AI in Abu Dhabi. The company reportedly targets to accumulate over USD 100 bn in assets under management in a few years.
IN OTHER TECH-RELATED NEWS-
G42 and Ray Dalio suspend partnership plans: Abu Dhabi-based state-owned firm and IHC subsidiary G42 and hedge fund mogul Ray Dalio have put their investment firm partnership on ice, Bloomberg reports, citing people familiar with the matter. The decision stems from concerns that Dalio might use intellectual property from his previous USD 160 bn firm, Bridgewater Associates, despite having signed a non-compete agreement. While the project is currently shelved, the two sides may revisit the partnership in the future, one source said. Dalio continues to hold a stake in G42, according to the sources.
REFRESHER- The partnership — initially set to launch last year — aimed to create an asset management arm for G42 based in the Abu Dhabi Global Market. Several employees had already transitioned between the Dalio family office and G42, Bloomberg previously reported, despite the partnership being delayed in July due to these setbacks.
