Dubai: The Dubai headquartered property developer Damac is going all in on tech investments, this time in Artificial Intelligence opportunities. This closely follows the company’s recent entry into building high-tech data centers.
The group has already made investments in AI-focused companies, including a $50 million exposure in the startup Anthropic. In fact, Damac emerged ‘as one of the top investors’ who bought into Anthropic from the bankrupt cryptocurrency exchange FTX.
It has also made investments in xAI – an American AI startup founded by Elon Musk - and in Mistral, a French AI company that is one of the 'best European large-language model open source'.
"We are excited to be part of the AI revolution and to contribute to the growth of this dynamic industry," said Hussain Sajwani, founder of Damac. (Sajwani, incidentally, has had tech related investments in the past, most notably during the late 1990s and early 2000s.)
"Our increased investment in AI reflects our commitment to supporting the development of ground-breaking technologies that can drive significant progress and create new opportunities across various sectors."
Real estate still part of the Damac mix
The high-profile tech forays is not at the cost of real estate action for Damac, which continues to be hyper-active when it comes to offplan launches in Dubai. In recent media briefings, Sajwani has made the point - repeatedly - that the growth trajectory Dubai property market is currently on can easily absorb more new homes being launched.
When it comes to AI, UAE and Gulf wealth funds have already been taking up positions in the space. Private sector businesses and family offices too are starting to do so when it comes to becoming early-stage investors in AI startups.
Even then, their perspective is that the AI investment and innovation 'revolution' still has a long way to go.
"We are excited to be part of the AI revolution and to contribute to the growth of this dynamic industry," said Sajwani. "Our investments in companies like Mistral, Anthropic, and xAI underscore our dedication to fostering innovation and driving the next wave of technological advancements."
According to forecasts, the biggest 'economic gains' from AI will be spotted in China, with a 26 per cent boost to GDP, and in North America, with a 14.5 per cent boost. "Together, these regions will account for almost 70 per cent of the global economic impact, equivalent to a total of $10.7 trillion," said a Damac statement.
