The New Capital of AI

Sheikh Tahnoun bin Zayed Al Nahyan, one of the most influential figures in Abu Dhabi’s ruling family, is emerging as a major force in the artificial intelligence (AI) industry. With financial resources totaling €1.4 trillion ($1.5 trillion), he aims to make Abu Dhabi the epicenter of this technological revolution.

Tahnoun is not a typical investor. His interests once included martial arts, chess, and video games, but now his full focus is on AI. He serves as Abu Dhabi’s National Security Advisor and is the brother of UAE President Sheikh Mohammed bin Zayed Al Nahyan. His goal is for this small but wealthy emirate to become a global AI leader.

Building an AI Empire

Tahnoun has launched a new AI investment fund, MGX, with an initial capital of €50 billion ($54 billion). Additionally, he controls Group 42 (G42), a company investing billions more into AI projects.

His investments span multiple high-profile AI ventures, including OpenAI, Elon Musk’s xAI, Amazon-backed Anthropic, and Stargate, a €100 billion ($108 billion) data center network being developed with White House support.

However, despite the booming AI market, risks are mounting. Chinese AI firms like DeepSeek are disrupting the industry with low-cost models, while sky-high valuations and excessive venture capital investment are fueling concerns of an AI bubble—reminiscent of the 2000s dot-com boom.

Tahnoun’s Strategic Vision

Even though AI companies are expected to lose billions in the coming years, Tahnoun is not holding back. His vision is to turn Abu Dhabi into a global AI infrastructure hub, complete with chip manufacturing plants, data centers, and AI startups—a shift away from the emirate’s dependence on oil.

From his private palace, he monitors AI model progress through a custom-built system that summarizes key developments for him. In his view, AI is the future of the global economy, and his country must be at the forefront of this transformation.

Microsoft’s President Brad Smith acknowledges Tahnoun’s influence, stating:

“He has the financial strength to invest in an industry that demands enormous capital.”

Choosing the U.S. Over China

Tahnoun had to make a strategic choice: align with the U.S. or continue ties with China. While G42 previously had close partnerships with Huawei, the U.S. government issued a clear ultimatum—’You have to choose.’

Tahnoun sided with the U.S., striking a deal with Microsoft that committed G42 to using only American technology. In return, Microsoft invested €1.4 billion ($1.5 billion) into G42.

However, if Abu Dhabi plans to enter semiconductor production, it will need U.S. approval to acquire advanced chips and manufacturing technologies—a major geopolitical hurdle.

Can Abu Dhabi Compete?

Tahnoun envisions Abu Dhabi as an AI hub, particularly targeting the Middle East, South Asia, and Africa. His plan revolves around building a strong AI industry around massive data centers, but many remain skeptical.

London and Paris, along with Silicon Valley, are competing fiercely to maintain their status as leading AI hubs. Attracting top-tier AI talent remains a significant challenge, as the industry’s brightest minds are still concentrated in major Western tech cities.

The Power Behind the Throne

Tahnoun grew up in the shadow of his brother, President Mohammed bin Zayed, but has carved out his own path to power. Today, he controls Abu Dhabi’s two largest sovereign wealth funds, managing a staggering €1.4 trillion ($1.5 trillion) in assets.

Unlike traditional investors, he takes a direct approach, personally meeting tech giants such as Apple, Microsoft, and BlackRock, as well as Mark Zuckerberg and Elon Musk—seeking firsthand insights into AI’s future.

Beyond AI, Tahnoun is also involved in sports investments. He turned Abu Dhabi into the global capital of jiu-jitsu, funded a top cycling team, and acquired Colnago, a leading Italian bicycle manufacturer.

Conclusion: A High-Stakes AI Gamble

Tahnoun’s ambitions go beyond financial investments—he wants Abu Dhabi to become the new capital of AI. However, significant challenges lie ahead:

• Market saturation and competition from the West
• Geopolitical and technological barriers
• Uncertain long-term profitability in AI infrastructure

Yet, his immense financial power and aggressive investment strategy make him a unique player in the global AI race.

One thing is certain—his involvement will permanently reshape AI’s power dynamics worldwide.

Source: Based on WSJ.com materials