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Gulf Sovereign Wealth Funds Fuel AI and Media Deals

Wall Street Journal Markets •
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Gulf sovereign-wealth funds have become major players in global finance, deploying billions into high-profile deals before the Iran conflict disrupted the region. These funds invested heavily in OpenAI's massive funding rounds, the $55 billion buyout of Electronic Arts, and the Warner Bros. Discovery takeover, reflecting both the AI boom and the funds' growing size.

With oil revenues fueling their expansion, Gulf nations are positioning themselves at the forefront of artificial intelligence while seeking returns for their vast reserves. The United Arab Emirates, with a population of just over 11 million, has built the region's largest investment war chest through multiple funds concentrated in Abu Dhabi. Sheikh Tahnoon bin Zayed Al Nahyan leads this effort as chairman of key funds including ADIA and MGX, which has emerged as a dominant force in AI investing.

However, the Iran conflict has economists downgrading regional growth forecasts, raising questions about future investment flows. While the full impact remains uncertain, the Gulf's financial firepower and strategic ambitions in technology and media suggest these funds will continue seeking global opportunities despite regional tensions.