Khaldoon Al Mubarak, managing director of the Mubadala sovereign wealth fund, has reaffirmed his commitment to the burgeoning field of artificial intelligence (AI) and its transformative potential. Under his guidance, Mubadala, which manages assets worth $330 billion, has strategically invested in AI and its supporting infrastructure. This initiative underscores the fund's foresight in embracing cutting-edge technology to secure long-term returns.
Mubadala has made significant strides by investing in data centers and leading technology firms, notably OpenAI. The fund's partnership with OpenAI aims to foster AI development in the UAE and broader regional markets. In October, Mubadala participated in OpenAI's latest fundraising round, contributing to a substantial $6.6 billion capital influx. Additionally, Mubadala stands as a founding investor in MGX, Abu Dhabi's AI-focused investment vehicle.
The fund's investments extend to G42, a dedicated AI firm, and a strategic partnership with Microsoft to leverage its cloud services for AI applications. Last year, Microsoft itself invested $1.5 billion in G42, reinforcing the collaborative ecosystem centered around AI advancement.
Al Mubarak's vision includes leveraging these investments to enhance the UAE's technological landscape. His optimism about AI's future potential is palpable. He expressed that "the demand is going to be profoundly high in terms of the enablement of that technology," highlighting the need for robust infrastructure to support this growth.
"I think on the consumer side, China has a lot to offer, and I think will continue to provide good opportunities," he noted, emphasizing China's role in the global market.
Despite potential political and trade headwinds, Al Mubarak remains optimistic about China's economic prospects. He pointed out that major Chinese cities like Shanghai and Hong Kong are poised for notable returns in 2024. The Shanghai Composite Index rose by 12.7% last year, while Hong Kong's Hang Seng index is projected to gain nearly 18% in the coming year.
"Tariffs, trade, wars, whatever word you want to use, I think these are all challenging. I think not just for China, I think for the world, but I feel at the end of the day, there's enough out there for pragmatic, reasonable, soft landings that would generate, I think, an optimal outcome for all," Al Mubarak remarked on the geopolitical landscape.
He also emphasized China's potential with its significant population and growing middle-income demographic. The Chinese government has implemented measures to invigorate its economy by cutting interest rates and announcing stimulus plans. However, Al Mubarak believes more can be done to stabilize China's domestic economy.
"Let's look at the basics. When you look at the Chinese economy, it's the second largest economy in the world. You have a population of 1.4 billion people. You have a significant middle-income population that's growing. You have a growth in GDP consistently. So I think these are all, let's say, the basic frameworks of how we look at China."
Mubadala's focus on AI extends beyond infrastructure and technology firms; it encompasses energy and data transmission sectors crucial for sustaining technological demand.
"be it energy, be it transmission, but also all forms of technology, of energy technology that's going to help fuel this huge demand," Al Mubarak added.
The fund evaluates its investments with a long-term perspective, considering a 10-year horizon rather than short-term gains. This strategic outlook positions Mubadala to capitalize on the exponential growth anticipated in AI and related sectors.
"When you look at a 10-year horizon, which is how we look at these investments — we don't look at a one-year or two-year, we'll look at the next 5, 10, 20 years. And I think the growth in that demand is so strong, even if you take a conservative view, there's an overwhelming growth coming in that space."
Mubadala's ventures into AI signify confidence in its potential to revolutionize industries and drive economic development.
"That's what gives me a lot of confidence. And I think that's where I see, and we see, the opportunity."