How Gulf Funds Are Buying The Backbone Of AI

Source Domain: www.forbes.com

Sovereign wealth funds, particularly Gulf states’ funds, invested heavily in artificial intelligence and digital infrastructure in 2025, with commitments reaching $66 billion.
The funds have shifted from passive investments in AI companies like Nvidia or Microsoft to investing directly in underlying infrastructure, including data centers, power, and debt associated with AI.
This move represents a strategic decision to control the foundational infrastructure that supports AI technologies, believing that this will provide steadier returns as compute demand consistently grows.
This strategy illustrates a longer-term, patient capital approach compared to earlier venture capital-style investments in AI.
Despite the benefits, this infrastructure-focused approach concentrates risk on a single thesis: the sustained growth of compute demand. This concentration could lead to compounded losses if demand does not meet expectations.
Sovereign funds have the advantage of long investment horizons and strong financial backing, which can help weather market downturns.

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