DAMAC Group ramps up AI investments with $50m Anthropic deal

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Dubai property giant DAMAC Group has ramped up investment in the buoyant artificial intelligence (AI) sector with a $50m Anthropic deal. The group has also made significant investments in xAI, an American AI startup founded by Elon Musk, and Mistral, a French AI firm.

The investments are part of the conglomerate’s broader strategy to advance digital infrastructure and support the tech transitions that are essential for future growth and innovation.

“Our increased investment in AI reflects our commitment to supporting the development of groundbreaking technologies that can drive significant progress and create new opportunities across various sectors,” the group’s founder, Hussain Sajwani, said in a statement.

DAMAC’s family office has already invested in over 70 funds across various strategies, demonstrating its commitment to fostering innovation and growth across multiple industries. With this new focus on AI, the group seeks to boost its role in advancing foundational AI models and infrastructure.

The conglomerate’s increased focus on AI and tech infrastructure is expected to bolster its portfolio and pave the way for strategic partnerships and collaborations. DAMAC also aims to leverage advanced technologies to create value and drive sustainable growth.

A study by PwC revealed that AI could contribute up to $15.7tn to the global economy by the end of the decade. The report highlights that initial GDP gains will be driven by improvements in labour productivity as companies augment their workforce with AI technologies and automate certain tasks and roles.

DAMAC launched its data centre business, EDGNEX Data Centres, in 2021 as the group seeks to capitalise on the growing demand for robust digital infrastructure.

The company forayed into the Indonesian market in May, with plans to build a 15-megawatt (MW) data centre in Jakarta. The conglomerate plans to complete the construction of the first phase of the facility in the last quarter of 2025.

EDGNEX is making significant strides in Saudi Arabia, with facilities under construction in Dammam and Riyadh that will deliver 55MW by 2025. The company plans to build data centres in Jordan and Türkiye in partnership with Vodafone.

Read: Vodafone, DAMAC to build $100m data centre in this city