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Abu Dhabi-Backed MGX Group Makes $2 Billion Investment in Binance

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The Abu Dhabi-backed investment group MGX has made a $2 billion cryptocurrency investment in Binance, the world’s largest crypto exchange, marking one of the largest institutional investments in the crypto industry to date. The deal, announced on Wednesday, will see MGX become a minority shareholder in Binance, with the investment made in stablecoin – a type of cryptocurrency tied to a fiat currency such as the dollar.

This marks Binance’s first institutional investment, although the exact stablecoin used and the size of MGX’s stake have not been disclosed by either party. Binance’s spokesperson also declined to comment on the governance rights associated with the deal.

Founded in 2017 in China by Changpeng Zhao (CZ), Binance quickly grew into the largest crypto exchange globally, largely due to skyrocketing demand for bitcoin and other cryptocurrencies. However, the company and Zhao faced significant legal challenges, including a guilty plea to violating U.S. anti-money laundering laws and spending time in jail last year.

Since Richard Teng succeeded Zhao as Binance’s head, the company has been strengthening its connections with the United Arab Emirates (UAE), with Binance employing around 1,000 of its 5,000 global staff in the UAE. This investment deepens ties between Binance and the UAE, as the nation aims to become a global hub for digital assets, including cryptocurrencies.

MGX, established a year ago, is focused on advancing AI and blockchain technologies through strategic partnerships. In addition to its investment in Binance, MGX has also backed OpenAI and Elon Musk’s xAI. The firm is chaired by Sheikh Tahnoon bin Zayed Al Nahyan, the UAE’s national security adviser, and is backed by Abu Dhabi’s Mubadala wealth fund.

The investment comes amid a crypto industry revival, following the collapses and scandals in 2022, and a surge in bitcoin’s value. MGX’s involvement in Binance signals growing interest in blockchain’s transformative potential for digital finance, according to Ahmed Yahia, MGX’s CEO.

Teng also emphasized that this partnership would help shape the future of digital finance, signaling a significant step forward for both Binance and the global crypto industry.

OpenAI CEO Sam Altman to Visit Abu Dhabi for Fundraising Talks with MGX

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Sam Altman, CEO of OpenAI, is set to visit the United Arab Emirates this week to engage in fundraising discussions with the Abu Dhabi-based investment group MGX. Sources familiar with the matter confirmed that the meetings will center on raising funds for OpenAI’s ambitious model development and infrastructure project, Stargate. The company is seeking about $40 billion to fuel its growth amid increasing competition from cheaper AI alternatives like China’s DeepSeek.

MGX was involved in OpenAI’s previous funding round, which raised $6.6 billion in October. Known for its growing presence in the U.S. AI landscape, MGX has invested in companies such as xAI and Databricks. The firm was not immediately available for comment on Altman’s upcoming visit.

This trip follows a series of discussions in Asia, including an announcement of a new AI services partnership with Japan’s SoftBank. As the UAE pushes to become a leader in AI, it faces increasing competition from regional neighbors like Qatar and Saudi Arabia. In December, UAE President Sheikh Mohamed bin Zayed Al Nahyan emphasized AI as a key priority during his visit to Washington.

In addition to the talks with MGX, Altman is also navigating partnerships for OpenAI’s Stargate initiative, a joint venture involving OpenAI, SoftBank, and Oracle, with MGX participating. The venture aims to invest up to $500 billion over the next four years in server infrastructure to support AI development.

Altman’s visit to India earlier this week included discussions on building a low-cost AI ecosystem, further highlighting OpenAI’s global strategy. While the company has seen rapid growth—reaching over 300 million weekly active users in two years—competition from cost-effective AI models, such as DeepSeek, poses a new challenge. OpenAI is part-owned by Microsoft, which also plays a role in its expanding AI ventures.

The UAE’s AI push is largely driven by state-backed companies G42 and MGX, with the Mubadala wealth fund serving as a key partner. However, there are concerns in the U.S. about the UAE’s growing ties with China, particularly regarding the potential sharing of U.S. technology.