Members of Dubai and Abu Dhabi’s royal families are among investors backing a London-based artificial intelligence startup, according to people with knowledge of the matter, a rare haul in the midst of the current tech rout.
(Bloomberg) —
Members of Dubai and Abu Dhabi’s royal families are among investors backing a London-based artificial intelligence startup, according to people with knowledge of the matter, a rare haul in the midst of the current tech rout.
Abu Dhabi-based AI firm G42, part of a business empire overseen by the United Arab Emirates’ national security adviser Sheikh Tahnoon Bin Zayed, invested in The Applied AI Co., the people said, asking not to be identified because the matter is private. Dubai’s Al Maktoum family also took part in the $42 million funding round, the people said.
The investment will help AAICO, set up by former Goldman Sachs Group Inc. banker Arya Bolurfrushan, to develop AI products in the insurance, government, pharmaceutical and healthcare sectors, according to the founder and chief executive officer. The firm has a 34-strong engineering team with alums from Amazon.com Inc., Alphabet Inc. and JPMorgan Chase & Co.
AAICO is planning its expansion against a challenging backdrop as rising interest rates, market upheaval and a global slowdown in funding threaten the prospects of an industry after a boom in 2021. After expanding rapidly in recent years, the growth of Middle Eastern and North Africa technology firms slowed in the last three quarters, according to Dubai-based research firm Magnitt.
G42’s investment comes as Abu Dhabi — a city that’s among the few globally to manage over $1 trillion in sovereign wealth capital — plows oil revenue into the technology sector and diversifies its economy.
Mubadala Investment Co., an Abu Dhabi wealth fund that owns a minority stake in G42, has itself stepped in to invest in the sector despite the recent market turmoil. Meanwhile, G42 is setting up a $10 billion fund with a focus on technology investments in emerging markets.
A representative for AAICO declined to comment on the details of the firm’s latest backers but said they included a “prominent AI and cloud platform company” as well as “distinguished families” from Europe and the Middle East. A representative for G42 confirmed the investment, while the Dubai Media Office did not respond to requests for comment.
Dubai-based Bolurfrushan — whose previous experience includes two years at Goldman Sachs until 2008, Harvard Business School, and a chief financial officer role at RAK Petroleum — founded UAE-based AAICO in 2021 after first setting up Accrete Capital Technologies, essentially a hedge fund that sells stakes in itself through digital tokens.
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