Kuwait's sovereign fund joins Microsoft's AI infrastructure alliance

Kuwait Investment Authority (KIA), the sovereign wealth fund of Kuwait, has joined the Microsoft-backed AI infrastructure investment alliance, becoming the first non-founder financial anchor in the alliance.

 

This is also the first major investment in the AI field by KIA since the new management leader Sheikh Saoud Salem Al-Sabah took office.

The full name of the project is "Global AI Infrastructure Investment Partnership". It is a fund led by Microsoft and BlackRock in September 2024, aiming to invest in AI infrastructure to strengthen the AI supply chain and energy access.

 

The project seeks to raise $30 billion through private equity and plans to leverage up to $100 billion in potential investments in the future. UAE-based investment firm MGX and BlackRock-owned Global Infrastructure Partners (GIP) are also partners of the fund, and Nvidia provides technical support.

 

In March this year, Elon Musk's xAI announced its joining the alliance, and Nvidia also officially joined to jointly participate in the construction of data centers and other AI infrastructure.

 

The project was subsequently renamed "AI Infrastructure Partnership (AIP)". In addition to cooperating with technology companies, the alliance also works with energy companies such as NextEra Energy and GE Vernova to provide energy solutions for AI infrastructure.

 

The specific investment amount of KIA's joining has not been disclosed yet.

 

Compared with KIA, other sovereign funds in the Gulf region have long been active in the AI field.

 

MGX is jointly established by the Mubadala Investment Company, the sovereign fund of the UAE, and the G42 Group. The Saudi Public Investment Fund (PIF) has recently established a new company, HUMAIN, which focuses on investing in the AI value chain and has cooperated with international technology companies such as Nvidia.

 

KIA's participation this time is also a positive attempt to further its AI layout through international cooperation.

 

Founded in 1953, KIA is one of the world's oldest sovereign wealth funds. Its current asset size is estimated to be about $1 trillion, ranking second in the Middle East, second only to the Abu Dhabi Investment Authority (ADIA) of the UAE.

 

Its investments cover many key areas such as ports, airports, and power transmission and distribution, and it is an important force in promoting Kuwait's economic diversification strategy.