The spy Sheikh’s AI empire: How Sheikh Tahnoon is turning Abu Dhabi into an AI hub

Sheikh Tahnoon bin Zayed Al Nahyan (Image Credit: Bloomberg)

For years, Sheikh Tahnoon bin Zayed Al Nahyan has operated in the shadows, his official title as UAE’s National Security Adviser barely scratching the surface of his real influence. A strategist, he has long been known as Abu Dhabi’s most powerful behind-the-scenes presence, controlling a sprawling financial empire worth $1.4 trillion, as cited by a Wall Street Journal report. Now, with artificial intelligence (AI) emerging as the next great battleground for global economic and technological dominance, WSJ has reported that Sheikh Tahnoon is now making his boldest play yet, turning Abu Dhabi into a global AI hub.

Armed with deep pockets, strategic alliances, and a web of sovereign wealth funds, Sheikh Tahnoon is betting big on artificial intelligence, pumping billions into AI research and computing power, the WSJ report has said.

Member of Abu Dhabi's ruling Al Nahyan family, Sheikh Tahnoon is leading a new artificial intelligence fund, MGX, which is expected to receive over $50 billion of his wealth and other sources from Abu Dhabi, people familiar with the matter told WSJ. Additionally, Group 42, a company under his control, plans to invest billions more in AI.

Over the past decade, he has consolidated control over Abu Dhabi’s most powerful financial institutions:

·         ADQ (Abu Dhabi Developmental Holding) – A $200 billion sovereign wealth fund

·         Mubadala Investment– Another sovereign wealth fund controlling over $300 billion

·         International Holding Company (IHC) – A conglomerate that has rapidly expanded under his leadership, with a market value exceeding $240 billion

·         Group 42 (G42) – The AI and cloud computing powerhouse leading Abu Dhabi’s AI ambitions

Through these entities, Sheikh Tahnoon has exerted unprecedented control over capital, data, and infrastructure, the WSJ report said. Sheikh Tahnoon now sees an opportunity in a third major AI hub that sits between Washington and Beijing, one that leverages Abu Dhabi’s wealth and strategic location to become a global AI powerhouse.

To achieve this, he is funnelling billions into AI infrastructure, computing power, and partnerships,

The $50 Billion MGX Fund

Sheikh Tahnoon’s latest move is the creation of MGX - an AI investment fund backed by over $50 billion – which is one of the largest AI-focused funds in the world, designed to:

·         Invest in AI startups, foundational models, and semiconductor development

·         Build state-of-the-art AI infrastructure in Abu Dhabi

·         Attract global talent and convince top AI researchers to relocate

Group 42: Abu Dhabi’s AI Engine
At the heart of Sheikh Tahnoon’s AI ambitions is Group 42 (G42)—a company he controls that is rapidly emerging as the Middle East’s most powerful AI player. G42 has already:

·         Partnered with Microsoft, securing access to advanced AI computing resources

·         Invested in OpenAI, Anthropic, and Elon Musk’s xAI, ensuring a stake in leading AI research

·         Set up AI-driven data centers and cloud computing networks across the UAE

·         Explored semiconductor investments to secure high-powered AI chips

·         G42’s strategy isn’t just about investing—it’s about building AI capabilities directly within Abu Dhabi.

Strategic US Ties and Geopolitical Tightrope
Sheikh Tahnoon’s AI ambitions hinge on maintaining strong ties with US tech giants, but it’s a delicate balancing act.

·         In 2023, Abu Dhabi had to cut ties with Huawei, a move that allowed UAE to continue doing business with Microsoft, OpenAI, and Nvidia, WSJ said.

·         Washington remains cautious, especially about Chinese influence in the UAE, but has permitted collaborations like the Microsoft-G42 partnership.

·         Elon Musk and Mark Zuckerberg have met Sheikh Tahnoon, discussing potential AI partnerships.

·         Beijing has deep AI ties with the UAE, but Abu Dhabi is careful not to provoke US concerns over Chinese influence in its AI sector.

By strategically engaging with both US and China, Abu Dhabi is aiming to remain a neutral AI hub, attracting talent, investment, and cutting-edge technology. Sheikh Tahnoon has turned Abu Dhabi into a global finance and intelligence powerhouse, and now AI is his next battlefield.