The Gulf states are betting big on AI: who’s investing where?

Almost a decade ago, Gulf sovereign wealth funds drew sharp criticism from financial analysts for investing heavily in frontier technology. The investments often comprised speculative Silicon Valley ventures, rather than sticking to traditional portfolios of infrastructure, real estate, or public equities that provided steady returns. Some of that criticism was warranted. The Saudi’s PIF and Abu Dhabi’s Mubadala made sizeable investments in Soft Bank’s debut $93 billion Vision Fund 1, launched in 2017. It saw high-profile missteps with “disruptor” startups, most notably WeWork which was forced to file for bankruptcy and restructure billions in debt. SoftBank was dubbed the “Nasdaq whale” for stoking the fevered rally in big tech stocks. It’s a very different story today as the Gulf funds stand ready to reap multi-billion-dollar windfalls as stakeholders in SpaceX, tipped to make history on Wednesday with a $1.77 trillion listing. The PIF-backed AI venture HUMAIN invested $3 billion into xAI’s $20 billion Series E round in February, shortly before it merged with SpaceX. Humain said the deal made it a “significant” minority shareholder in xAI, and that its holdings subsequently converted into SpaceX shares. Prince Alwaleed’s Kingdom Holding, the Oman Investment Authority and the Qatar Investment Authority acted as foundational investors in xAI during a Series C round in December 2024. The UAE also has good representation. Both the International Holding Company and Alpha Dhabi Holding invested in SpaceX in 2022, while Abu Dhabi’s advanced technology investor, MGX, also participated in xAI’s last funding round. Read more: The U.S. and Europe feared the Iran conflict would curtail the Gulf’s appetite for global investments. The opposite is true But SpaceX’s IPO is just the beginning. OpenAI and Anthropic—in which Gulf investment is also embedded—also plan to go public this year with possible trillion-dollar listings. At the end of May, Anthropic raised $65 bil