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Khaldun Al Mubarak, CEO of Mubadala, Abu Dhabi’s sovereign wealth fund
Mark Atkins | Getty Images Sport | Getty Images
The world has not yet fully realized the scale of changes that artificial intelligence will bring to all aspects of human life, CEO of Abu Dhabi Sovereign Fund Mubadala told CNBC at the World Economic Forum in Davos.
“In terms of risks… this is a technology that nobody really appreciates today, really the level of disruption it will create, affecting everything from our lives, our businesses, human capital, employment, every sector. be disrupted,” Khaldoon Al Mubarak, head of the $330 billion fund, told CNBC’s Dan Murphy.
“And I think that while there’s a lot of opportunity, it also represents a significant amount of risk that’s unclear today because technology is moving so fast and we’re all trying to catch up as much as possible.”
Al Mubarak outlined the push Mubadala is making in artificial intelligence and the infrastructure that supports emerging technologies, including data centers and chip manufacturing.
Mubadala is one of the founding investors of MGX, Abu Dhabi’s AI-focused investment vehicle. The foundation took part in OpenAI’s the latest round of fundraising in October, which raised $6.6 billion. In the same month, the G42 Foundation’s artificial intelligence company announced a partnership with OpenAI to develop artificial intelligence in the UAE and regional markets.
Last year, Microsoft invested $1.5 billion in G42in a deal that will see G42 use Microsoft’s cloud services to run its artificial intelligence programs. And in December, Washington approved the export of advanced artificial intelligence chips to a facility in the UAE run by Microsoft as part of a G42 deal that has been scrutinized by US lawmakers over security concerns.
Al Mubarak expressed optimism about the future of artificial intelligence and the UAE’s ability to use its investment strategy to take advantage of it.
“The demand is going to be very high in terms of using this technology,” he said. That means that “the technology, the AI ​​capability, which is the infrastructure side – whether it’s energy, whether it’s transmission, but also all forms of technology, energy technology that will help fuel this huge demand, I would also add creating a hub data processing, chip making.’
“If you look at a 10-year horizon, the way we look at these investments — we’re not looking at a year or two, we’re going to be looking at the next 5, 10, 20 years. And I think the growth in this demand is so strong that even if you take a conservative view, there is tremendous growth in this space,” Al Mubarak stressed.
“That’s what gives me a lot of confidence. And I think that’s where I see and we see an opportunity.”
Still committed to China
Looking ahead to the global political landscape, Al Mubarak said Abu Dhabi’s wealth fund plans to continue investing in China despite potential trade obstacles expected under the new Donald Trump administration and the country’s economic downturn.
“I’m still committed to investing in China,” Al Mubarak said after being asked if it was possible to invest in the Asian economic powerhouse in the Trump era, especially if trade tariffs are reinstated.
“Let’s look at the basics. If you look at the Chinese economy, it’s the second largest economy in the world. You have 1.4 billion people. You have a large middle-income population that is growing. You have steady GDP growth. So I I think that’s all, let’s say, the basic framework of how we look at China.”
The chief investment officer pointed to the big Chinese cities of Shanghai and Hong Kong as the markets with double-digit gains in 2024, with the Shanghai Composite up 12.7% last year and Hong Kong’s Hang Seng up nearly 18% in 2024.
He also noted the Chinese government’s efforts to boost markets late last year by cutting interest rates and announcing broad stimulus plans
“On the consumer side, I think China has a lot to offer and I think it will continue to provide good opportunities,” he said. “Tariffs, trade, wars, whatever word you use, I think it’s all complicated. I think not only for China, I think for the whole world, but I feel, in the end, that there are enough pragmatic, reasonable, soft landings that will lead, I think, to the optimal result for everyone.”
Al Mubarak said Chinese policymakers should do more to strengthen the country’s domestic economy, which slowed last year due to a crisis in the real estate market, sluggish consumer spending, an aging population and geopolitical competition.
“Yes, I think the domestic economy is obviously critical, especially given how trade or the global trade situation has played out,” he told CNBC. “And anything that helps continue to stimulate the Chinese consumer market, I think is a positive signal for the markets.”
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