• MGX, Abu Dhabi's sovereign-backed AI investment firm, is in advanced talks to join a $3-5 billion funding round for Anthropic, potentially valuing the AI startup at $170 billion.
  • The deal underscores MGX's aggressive global expansion in artificial intelligence, part of a broader UAE strategy to diversify from oil and target AI contributions to 14% of GDP by 2030.
  • Anthropic, led by CEO Dario Amodei, is scaling rapidly with over $4 billion in annual recurring revenue, leveraging this round to fuel compute expansion and IPO plans this year.

MGX is nearing a significant investment in Anthropic's latest fundraising effort, according to people familiar with the matter, as the Abu Dhabi-based firm accelerates its push into global artificial intelligence. The sovereign-backed entity, launched in 2024 under Sheikh Tahnoon bin Zayed Al Nahyan, is in advanced discussions to participate in a $3-5 billion round that could value the AI startup at around $170 billion. This move aligns with MGX's broader strategy to become one of the world's largest AI funds, with plans to raise $25 billion from third-party investors.

Anthropic, the developer of AI models like Claude, has seen its valuation soar amid surging enterprise demand, with recent financials showing it hit over $4 billion in annual recurring revenue. The company, founded in 2021 by former OpenAI executives, is in the midst of a rapid scaling phase, with a $10 billion round led by GIC and Coatue potentially pushing its pre-money valuation to $350 billion. This latest funding effort comes on the heels of a $13 billion Series F round in September 2025 at a $183 billion valuation and up to $15 billion committed from Nvidia and Microsoft for compute capacity announced in November 2025.

"Efforts to secure this capital have progressed swiftly," one source said, noting that without a deal, Anthropic might face constraints in expanding its infrastructure to meet growing demand. The startup aims to reach breakeven by 2028 and is eyeing an IPO later this year, making this funding round critical for its near-term trajectory. In a leaked memo earlier this year, CEO Dario Amodei addressed Gulf investments, emphasizing that funding would not grant operational influence—a point that sparked some criticism in the region but has not derailed deal momentum.

For MGX, this investment represents a key piece of its aggressive expansion into AI, backed by Mubadala and G42. The firm has already made notable moves, including stakes in OpenAI, xAI, and a potential $1 billion round in Mistral at a $10 billion valuation, alongside the $30 billion Global AI Infrastructure Partnership with Microsoft, BlackRock, and others for data centers. This activity is part of a broader trend among Gulf Cooperation Council sovereign wealth funds shifting to lead deals in AI and data centers, as seen in parallels like the Qatar Investment Authority's role in Anthropic's prior round and Abu Dhabi Investment Authority's $1.6 billion investment in Vantage data centers.

Industry-specific elements are at play here, with filing deadlines and partnership structures influencing the timing. The deal reflects a reversal from Anthropic's earlier stance in 2024, when it expressed caution about Gulf capital amid geopolitical concerns, but the startup has since pivoted to tap into the region's massive capital pools, estimated at over $100 billion. "What investors like us are really focused on is regulatory stability and growth opportunities," a person close to MGX said, echoing sentiments from similar transactions. The UAE's multi-billion-dollar AI policy, overseen by national security figures, drives these investments, with international ties bolstered through initiatives like the UAE-France AI corridor.

In terms of implications, this investment could fund Anthropic's compute expansion, including a $30 billion Microsoft Azure commitment, while positioning the GCC as a leader in AI. Short-term, it supports MGX's $25 billion fundraise and scales the UAE's global AI play; long-term, experts see sustained sovereign wealth fund-led mergers and acquisitions in AI and renewables, with the UAE targeting data center and energy hubs. Attempts to reach MGX and Anthropic for comment were not immediately successful, but sources indicate negotiations are ongoing, with a potential announcement expected in the coming weeks.

Correction: An earlier version of this article misstated the potential valuation; it is $170 billion, not $183 billion.