Kuwait joins $30B BlackRock and Microsoft-backed AI infrastructure venture to break free from oil dependency

Kuwait’s sovereign wealth fund is joining a $30 billion AI infrastructure initiative backed by Microsoft, BlackRock, and Abu Dhabi’s MGX, marking its first major AI investment under new leadership.

According to Bloomberg, the investment is part of the oil-rich nation’s effort to break free from oil dependency and expand into the booming AI sector. The Kuwait Investment Authority is joining as the first financial anchor outside the founding group of the AI Infrastructure Partnership, Bloomberg added, citing the Tuesday statement.

“The Kuwait Investment Authority will become the first non-founder financial anchor in the AI Infrastructure Partnership, according to a statement on Tuesday that didn’t disclose any financial commitment. Microsoft, Abu Dhabi’s MGX and BlackRock Inc. had in March added Elon Musk’s xAI and chipmaker Nvidia Corp. to the initiative,” Bloomberg reported.

The announcement comes as Microsoft and its partners continue to ramp up infrastructure commitments globally, including a $400 million investment in Switzerland to boost AI and cloud capacity.

The move marks the Kuwait Investment Authority’s (KIA) first big step into AI under its new managing director, Sheikh Saoud Salem Al-Sabah. It’s a calculated shift—Kuwait is looking to lessen its dependence on oil by putting money into tech that could reshape the future.

A $30B Bet on AI Infrastructure

The initiative, originally formed by Microsoft, BlackRock, and MGX, aims to raise up to $100 billion, including debt financing. The goal? Build out data centers and energy infrastructure needed to keep up with AI’s growing appetite. Elon Musk’s xAI and Nvidia are also involved. Most of the early work will take place in the U.S., but other countries tied to the partnership will get a piece of the action.

KIA is the first financial backer brought in from outside the founding group. While it didn’t disclose how much it’s committing, the decision to join signals Kuwait’s intent to play a more active role in shaping the future of AI infrastructure. MGX shared the news on X, calling KIA’s addition a major step in expanding the initiative globally.

Kuwait Is Moving with Intent

KIA manages roughly $1 trillion in assets and has a long track record of investing in traditional infrastructure like ports and airports. But compared to regional players like Saudi Arabia’s PIF or Abu Dhabi’s Mubadala, it hasn’t been in the AI spotlight—until now.

Sheikh Saoud is steering the fund toward faster-growth sectors. That tracks with a broader regional trend, where Gulf nations are working to reduce their reliance on fossil fuels and looking for big returns in future-focused industries. Saudi Arabia, for example, announced plans for a $40 billion AI fund earlier this year. MGX, meanwhile, has already backed OpenAI and Anthropic.

Tech Meets Geopolitics

Middle Eastern investment in AI isn’t just about returns—it’s about influence. These moves are helping Gulf nations build stronger ties with U.S. tech giants and carve out a seat at the global table.

Earlier this year, Bloomberg reported that MGX is part of a separate $100 billion AI initiative launched by U.S. President Donald Trump, alongside OpenAI, SoftBank, and Oracle. At the same time, some U.S. lawmakers have raised concerns about deals with foreign players, especially after reports that a Microsoft-G42 deal was under review over tech transfer concerns.

But supporters argue this kind of investment helps Western firms stay ahead of rivals like China. Jared Cohen from Goldman Sachs called Gulf countries “geopolitical swing states,” because of how much capital they can move—and how quickly they’re willing to do it.

Risk vs. Reward

For KIA, joining the initiative could bring long-term upside. Infrastructure is a backbone of AI progress, and data centers and chip facilities aren’t getting any cheaper. Earlier this year, Sam Altman was reportedly courting Gulf investors to help fund AI chip manufacturing at scale, hinting at the kind of funding this sector still needs.

That said, KIA tends to take a more conservative approach compared to its peers. That might mean a smaller presence in decision-making unless it chooses to scale up its exposure. Execution could also be a challenge—as seen with some delayed projects in Saudi Arabia like the Gaia accelerator.

But the upside is clear. If this infrastructure buildout succeeds, Kuwait could become a core player in the AI supply chain—and boost its reputation as a forward-looking investor in the process.

A Broader Regional Push

Kuwait’s entry into AI is part of a bigger shift across the Gulf. Saudi Arabia recently launched “Humain,” a new AI company aimed at building data centers and Arabic-language AI models. Qatar and the UAE are deep in the mix, too. Mubadala, for instance, has backed eight AI deals in just four years.

Not everything goes according to plan. Some regional initiatives have stumbled over delays or follow-through. But with serious capital on the table and long-term interest in reshaping their economies, these countries aren’t backing down.

KIA’s latest move makes one thing clear: Kuwait wants a seat at the AI table. And it’s willing to write a big check to get there.