Alpha Dhabi Commits $1 Billion to Global AI Investments

Alpha Dhabi Holding, a subsidiary of Abu Dhabi-listed International Holding Company, has entered into an agreement to allocate $1 billion for investments in artificial intelligence companies worldwide.

The investment will be made through the Alpha Wave III fund, which is managed by Alpha Wave Global and also targets high-growth enterprises, the company said in a statement on Monday. Alpha Dhabi will deploy the committed capital gradually, following “capital calls and the fund’s investment programme”, according to a filing with the Abu Dhabi Securities Exchange, where its shares are traded.

New AI Investment Fund

Returns from the Alpha Wave III fund will be determined by the performance and valuation of the underlying investments. Value is expected to be realised through distributions and exits over the fund’s lifetime.

The commitment aligns with Alpha Dhabi’s growth strategy and “broadens Alpha Dhabi’s access to artificial intelligence and innovation-led opportunities”, said Hamad Al Ameri, managing director and group chief executive of Alpha Dhabi. “This investment supports our portfolio diversification objectives and our focus on long-term value creation.”

Strategic Diversification

Alpha Dhabi, established in 2013, manages a portfolio of more than 250 public and private investments spanning 45 countries. The company invests in high-growth sectors including AI and technology, real estate, industry, construction, health care, energy and hospitality.

The latest commitment builds on Alpha Dhabi’s 2022 investment of Dh9.2 billion ($2.5 billion) in Alpha Wave Ventures II. That fund, launched by Chimera Capital and Alpha Wave, received a capital contribution of Dh2.6 billion and an undrawn capital commitment of Dh6.6 billion to be drawn down over time for investments in growth-stage companies globally, the company said at the time.

Through the venture fund, Alpha Dhabi has gained indirect exposure to companies including SpaceX, OpenAI and Anthropic. Alpha Dhabi intends to fund the investment in Alpha Wave III by recycling cash distributions from Alpha Wave Ventures II and using existing resources.

“The financial impact will be recognised over time, reflecting the timing of capital deployment and the performance,” Alpha Dhabi said on Monday.

Previous Investments

In August, Alpha Dhabi doubled its shareholding and capital commitment in its private credit joint venture with Abu Dhabi’s sovereign wealth fund, Mubadala Investment Company. Under the revised partnership, the company increased its capital commitment in Micad Credit JV to $1 billion and raised its shareholding from 20 per cent to 40 per cent in Micad, which manages about $1.7 billion in assets across 45 portfolio companies, Alpha Dhabi said at the time.

In May, Abu Dhabi’s Ta’ziz signed a deal with Alpha Dhabi targeting $10 billion in capital investment for a new industrial chemicals ecosystem in the emirate. The two companies said at the time that they were conducting a joint feasibility and market study, and the move remained subject to final investment decisions and regulatory approvals.