Khaldoon Mubarak, CEO of Abu Dhabi sovereign wealth fund Mubadala Investment Company, said in an interview that the world has not yet fully realized the extent of the changes that artificial intelligence (AI) will bring to every aspect of human life.
"In terms of risk, this is a technology that no one really understands today, and the real degree of disruption it will bring, affecting every aspect of our lives, business, human capital, employment, and every industry will be disrupted," Khaldoon Mubarak said. "I think that while there are a lot of opportunities, it also brings a lot of risks. It's not clear at the moment because the technology is developing so fast and we are all trying to catch up as much as possible."
Khaldoon Mubarak outlined Mubadala Investment Company's efforts in artificial intelligence and the infrastructure that supports this emerging technology, including data centers and chip manufacturing. For example, Mubadala Investment Company is the founding investor of MGX, Abu Dhabi's investment vehicle focused on artificial intelligence. Last October, the wealth fund participated in OpenAI's latest $6.6 billion funding round, and in the same month, G42, an AI company under the wealth fund, announced a partnership with OpenAI to develop AI in the UAE and regional markets.
In addition, last year, MSFT.US invested $1.5 billion in G42, a deal that will see G42 use Microsoft's cloud services to run its AI applications. In December, Washington approved the export of advanced AI chips to a Microsoft-operated factory in the UAE as part of a partnership agreement.
Khaldoon Mubarak is optimistic about the future of AI and the UAE's ability to use its investment strategy to tap into it. "Demand is going to be very high in terms of implementing this technology," he said. "When you look at these investments from a 10-year perspective, I think the growth in demand is so strong that even if you take a conservative view, there will be overwhelming growth in this area." "That gives me a lot of confidence. I think that's what I and the opportunity we see is."
Will continue to invest in China
Looking ahead to the global political landscape, Khaldoon Mubarak said Mubadala Investment Company plans to continue investing in China despite the potential trade resistance expected from the new US administration. "I would say we remain committed to investing in China," Khaldoon Mubarak said. "Let's look at the basics," he added. "China is the world's second largest economy, with a population of 1.4 billion, a growing middle-income group, and continued GDP growth. These are the basic frameworks for how we look at China." Khaldoon Mubarak said: "I think that ultimately, not only for China, but for the world, there is enough room for a pragmatic, reasonable soft landing. I think that will produce the most ideal outcome for everyone." He also believes that China's domestic economy is obviously crucial, especially considering the way trade or global trade situations evolve, "any move that helps continue to boost the Chinese consumer market is a positive signal for the market."