Alpha Dhabi commits $1bn to Alpha Wave III AI fund

Alpha Dhabi Holding has agreed to invest $1 billion in Alpha Wave III, a global fund managed by New York-based Alpha Wave Global. The Abu Dhabi investment company announced the commitment in a statement to the Abu Dhabi Securities Exchange on Monday.

The investment is subject to regulatory approvals.

Alpha Dhabi plans to fund the commitment by recycling cash distributions from Alpha Wave Ventures II and using existing resources, according to the statement. The statement gave no further details.

What the fund does

The new fund will focus on investing globally in AI and high-growth businesses developing and applying transformative technologies.

Background

The commitment builds on an existing position. In May 2022, Alpha Dhabi committed AED9.2 billion to the Alpha Wave Ventures II fund, launched by Abu Dhabi-based asset manager Chimera Capital and Alpha Wave. Through the fund, it gained indirect exposure to companies including SpaceX, OpenAI and Anthropic.

Gulf investors have committed billions to AI, including Anthropic and Elon Musk’s xAI. In an interview with AGBI, former Google executive and adviser to Gulf governments Mo Gawdat said the AI sector was in a bubble that could burst next year.

International Holding Company owns 58 percent of Alpha Dhabi, according to ADX data. Alpha Dhabi shares closed at AED6.77 on Friday, down more than 28 percent so far this year.