At the World Economic Forum in Davos, the CEO of Abu Dhabi’s $330 billion sovereign wealth fund, Mubadala, issued a stark warning about the disruptive potential of artificial intelligence (AI). Khaldoon Al Mubarak emphasized that the global community has yet to truly grasp the transformative impact AI will have on every facet of human life, business, and industries.
“No one today really appreciates the level of disruption that AI is going to create,” Al Mubarak. He highlighted how AI is set to redefine human capital, employment, and all sectors of the economy. While he acknowledged immense opportunities, Al Mubarak cautioned that risks remain unclear due to the rapid pace of technological advancements.
Mubadala’s Strategic Push into AI
Mubadala has been at the forefront of AI investment, targeting the infrastructure that powers this burgeoning technology. Key areas of focus include data centers, chip manufacturing, and partnerships with leading technology firms.
The fund is a founding investor in MGX, Abu Dhabi’s AI-focused investment vehicle, and participated in OpenAI’s $6.6 billion fundraising round in October 2024. Additionally, Mubadala’s AI-dedicated company, G42, has partnered with OpenAI to further develop AI technologies in the UAE and regional markets.
Al Mubarak expressed confidence in the long-term growth of AI, particularly in infrastructure development like data centers, energy technology, and chip manufacturing.
“When you look at a 10-year horizon, which is how we view these investments, the growth in demand for AI infrastructure is overwhelming,” Al Mubarak noted. He underscored that even a conservative view predicts massive growth in the AI sector over the next two decades.
Global Partnerships and Challenges
Mubadala’s AI ambitions have attracted international partnerships. In 2024, Microsoft invested $1.5 billion in G42, enabling the UAE-based company to utilize Microsoft’s cloud services for AI applications. However, the partnership faced scrutiny from U.S. lawmakers due to security concerns, particularly after Washington approved the export of advanced AI chips to a UAE facility.
Despite these challenges, Al Mubarak remains optimistic about the UAE’s ability to leverage AI investments effectively.
Continued Commitment to China
Beyond AI, Al Mubarak reaffirmed Mubadala’s commitment to investing in China despite geopolitical and economic uncertainties. The re-election of Donald Trump and the possibility of renewed trade tariffs have raised concerns, but Al Mubarak believes China remains a key market.
“China is the second-largest economy in the world with a growing middle-income population. Its GDP growth and consumer opportunities make it a strong investment destination,” Al Mubarak explained.
He cited double-digit returns in major Chinese markets like Shanghai and Hong Kong in 2024. However, he urged Chinese policymakers to address domestic economic challenges, including a property market crisis, sluggish consumer spending, and an aging population.
AI: A Double-Edged Sword
While AI promises significant opportunities, Al Mubarak emphasized the need for caution. He warned that the rapid evolution of AI could lead to risks that are not yet fully understood. As the world grapples with the implications, Mubadala is positioning itself as a leader in driving AI advancements while preparing to navigate the challenges ahead.
“The demand for AI is going to be profoundly high,” Al Mubarak said, adding that Mubadala’s long-term investment strategy will ensure it capitalizes on the technology’s transformative potential.
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