Kuwait’s Sovereign Wealth Fund is taking part in a $30 billion AI infrastructure initiative backed by Microsoft, BlackRock and Abu Dhabi’s MGX, marking its first major AI investment under new leadership.
According to Bloomberg, the investment is part of an oil-rich country’s efforts to free itself from oil dependence and expand into the booming AI sector. The Kuwait Investment Authority is participating as the first financial anchor outside the establishment group of the AI Infrastructure Partnership, Bloomberg added, citing a statement on Tuesday.
“The Kuwait Investment Bureau will be the first non-found financial anchor for the AI infrastructure partnership, according to a statement on Tuesday that did not disclose its financial commitment. Microsoft, MGX of Abu Dhabi and BlackRock added Elon Musk’s Xai and Chipmaker Nvidia Corp. in March.
The announcement comes as Microsoft and its partners continue to increase their global infrastructure commitment, including a $400 million investment in Switzerland to increase AI and cloud capacity.
The move marks the first major step towards AI under the new Managing Director, Sheikh Saoud Salem Al-Sabah, Kuwait Investment Authority (Kia). It’s a calculated shift. Kuwait aims to reduce its dependence on oil by putting money into technologies that could change the future.
$30 billion bet on AI infrastructure
Originally founded by Microsoft, BlackRock and MGX, the initiative aims to raise up to $100 billion, including debt financing. the goal? Build the data centers and energy infrastructure needed to meet AI’s growing appetite. Elon Musk’s Xai and Nvidia are also involved. Most of the early work will be done in the US, but other countries that have been linked to the partnership will get some of the action.
Kia is the first financial aid to come from outside the founding group. Although they did not reveal how committed they were, the decision to combine signals Kuwait’s intention to play a more active role in shaping the future of AI infrastructure. MGX shares X news and calls the addition of Kia a major step towards expanding its initiative globally.
Kuwait is moving intentionally
Kia manages around $1 trillion in assets and has a long track record of investing in traditional infrastructure such as ports and airports. However, compared to regional players like Saudi Arabia’s PIF and Abu Dhabi’s Mbadara, they have not been in the AI spotlight until now.
Sheikh Saoud is piloting its funds towards a faster growth sector. This tracks the broader regional trends that Gulf countries are working to reduce their dependence on fossil fuels and look for greater returns in future-focused industries. For example, Saudi Arabia announced plans for a $40 billion AI fund earlier this year. Meanwhile, MGX already supports Openai and humanity.
Technology meets geopolitics
Middle Eastern investment in AI is not just about returns, but about influence. These moves are helping Gulf countries develop stronger relationships with the US tech giants and open up seats at the global table.
Earlier this year, Bloomberg reported that MGX is part of a $100 billion AI initiative launched by US President Donald Trump, along with Open, Softbank and Oracle. At the same time, some US lawmakers have expressed concern about their transactions with foreign players, particularly after reports that Microsoft-G42 transactions are undergoing reviews over technology transfer concerns.
However, supporters argue that this type of investment will help Western companies stay ahead of rivals like China. Goldman Sachs’ Jared Cohen called the Gulf countries “geopolitical swing nations.”
Risk vs. Reward
For Kia, joining the initiative can bring about long-term upside-downs. Infrastructure is the backbone of AI’s progress, with data centers and chip capabilities not being cheaper. Earlier this year, Sam Altman reportedly courted Gulf investors to help fund the massive scale of AI chip manufacturing, as he suggested the kind of funds the sector still needs.
That said, KIA tends to take a more conservative approach compared to her colleagues. That may mean that there is little presence in decision making unless you choose to expand your exposure. Execution can also be a challenge. This is as seen in several delayed projects in Saudi Arabia, such as the Gaia Accelerator.
But the advantages are clear. If this infrastructure build-out is successful, Kuwait could become a core player in the AI supply chain, and in the process will boost its reputation as a future-looking investor.
Wide Regional Push
Kuwait’s entry into AI is part of a larger change across the Gulf Coast. Saudi Arabia recently launched “Humain,” a new AI company aimed at building data centers and building an Arabic AI model. Qatar and the United Arab Emirates are also deep in the mix. For example, Mbadara has supported eight AI transactions in just four years.
Not everything goes according to the plan. Some local initiatives have stumbled over delays and follow-throughs. However, these countries have not retreated due to serious capital on the table and long-term interest in restructuring their economy.
Kia’s latest move reveals one thing. Kuwait wants to have a seat at the AI table. And he’s willing to write a big check to get there.
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