Abu Dhabi’s artificial intelligence investment firm, MGX, has taken a significant step onto the global semiconductor stage by joining private equity giant Silver Lake in a deal to acquire a majority stake in Altera. The transaction sees the California-based programmable chip business spun out from Intel, positioning MGX as a key investor in foundational technology for the AI era.
The Strategic Investment in Altera
Under the terms of the deal, the buyout group led by Silver Lake and now including MGX will acquire a 51% stake in Altera, while Intel will retain a 49% holding. The transaction values the programmable solutions unit at $8.75 billion. While the specific size of MGX’s investment was not disclosed, its participation underscores the UAE’s strategic push into the critical hardware infrastructure that powers artificial intelligence.
A Foundational Platform for the AI Era
The investment is driven by a long-term vision for the future of computing. Omar Alismail, Chief Investment Officer for Semiconductors and Infrastructure at MGX, highlighted the strategic importance of the acquisition. “Altera provides a foundational platform for next generation computing,” he stated. “This is an opportunity to scale a company of such significance into a true global leader for the AI era.” The move aims to unlock Altera’s potential as a standalone entity focused on the rapidly growing market for programmable chips used in data centers, cloud computing, and AI applications.
MGX’s Rapid Ascent as an AI Superpower
Established in 2024 with Abu Dhabi’s sovereign wealth fund Mubadala and AI giant G42 as founding partners, MGX has quickly become a central pillar of the UAE’s economic and technological strategy. With ambitions to manage over $100 billion in assets, the firm is tasked with deploying capital into leading AI and technology ventures globally. MGX operates under the purview of Sheikh Tahnoon bin Zayed Al Nahyan, the UAE’s national security adviser, and is instrumental in the nation’s goal to become a dominant force in the global AI landscape.
About MGX
MGX is a technology investment company based in Abu Dhabi, UAE. Launched with foundational partners Mubadala and G42, its primary mission is to accelerate the development and adoption of artificial intelligence and advanced technologies. MGX focuses on building a portfolio of leading companies and creating value through strategic investments in high-growth sectors critical to the future of the global economy.
Source: Reuters
