In a landmark move signaling the Middle East’s burgeoning ambitions in artificial intelligence, Abu Dhabi’s newly formed investment firm MGX and the Qatar Investment Authority (QIA) are reportedly in advanced negotiations to invest in Anthropic, a leading competitor to OpenAI. The potential deal, part of a larger funding round, could value the US-based AI company at an astonishing $170 billion.
A Sky-High Valuation
The proposed valuation represents a dramatic leap from Anthropic’s most recent valuation of $18.4 billion, established earlier this year. According to the Financial Times, which first reported the talks, the $170 billion figure is considered “very aggressive” and “punchy” by sources familiar with the matter. If finalized at this level, it would underscore the immense investor appetite for foundational AI models and the companies developing them.
The Gulf’s Strategic AI Push
This potential investment highlights a concerted effort by Gulf nations to secure a strategic position in the global AI landscape. The involvement of MGX, Abu Dhabi’s new AI-centric investment company chaired by Sheikh Tahnoun bin Zayed Al Nahyan, is particularly noteworthy. Launched recently to accelerate the development and adoption of AI, MGX’s participation in such a high-profile deal immediately establishes it as a major global player.
Similarly, the participation of the Qatar Investment Authority, the nation’s sovereign wealth fund, demonstrates a coordinated regional strategy. Gulf sovereign wealth funds are increasingly deploying their vast capital to pivot from oil-dependent economies to technology and innovation-driven futures, with AI being a primary focus.
About Anthropic
Founded by former senior members of OpenAI, Anthropic has rapidly emerged as a formidable force in the generative AI space. The company is known for its focus on developing safe and reliable AI systems, a mission that has attracted significant backing from tech giants including Google and Amazon. Its flagship large language model, Claude, is a direct competitor to OpenAI’s GPT series, positioning Anthropic at the forefront of AI research and development.
Looking Ahead
Should this investment proceed, it would not only provide Anthropic with substantial capital to compete with heavily-funded rivals but also mark one of the most significant foreign investments into a top-tier AI startup. For the MENA region, it solidifies the role of its sovereign wealth funds as kingmakers in the global technology ecosystem. The move by UAE’s MGX and Qatar’s QIA sends a clear message that the Gulf is no longer just a source of capital, but an aggressive and strategic partner determined to shape the future of artificial intelligence.
Source: MENAbytes
