Alpha Dhabi commits $1 billion to Alpha Wave III AI investment fund

Alpha Dhabi Holding PJSC has signed an agreement to commit $1 billion (approximately AED 3.67 billion) to Alpha Wave III, a global investment fund managed by Alpha Wave Global, as part of its strategy to expand exposure to artificial intelligence and diversify its investment portfolio.

The commitment builds on Alpha Dhabi’s previous participation in Alpha Wave Ventures II, through which the Abu Dhabi-based investment holding company gained indirect exposure to companies including SpaceX, OpenAI and Anthropic.

The latest investment is intended to provide access to global artificial intelligence opportunities and high-growth businesses developing and applying transformative technologies.

Alpha Dhabi said the commitment remains subject to applicable approvals.

Alpha Dhabi expands AI investment exposure

Alpha Wave III is expected to invest globally in artificial intelligence and other high-growth businesses, offering exposure to technology-driven structural growth opportunities through a specialist investment platform.

The fund's investment strategy focuses on long-term value creation. Alpha Dhabi said the commitment is intended to strengthen portfolio diversification and support attractive long-term risk-adjusted returns.

The Group's capital will be deployed over time in line with capital calls and the fund's investment programme.

Returns will depend on the performance and valuation of the underlying investments, with value expected to be realised through distributions and exits over the fund's life.

Eng. Hamad Al Ameri, Managing Director and Group Chief Executive Officer of Alpha Dhabi Holding, said the commitment builds on the company's participation in Alpha Wave Ventures II and broadens its access to artificial intelligence and innovation-led opportunities.

He said the investment supports Alpha Dhabi's portfolio diversification objectives and focus on long-term value creation, reflecting its approach to allocating capital to opportunities that can create enduring value for shareholders.

Investment to be funded through existing resources

Alpha Dhabi intends to fund the commitment through the recycling of cash distributions from Alpha Wave Ventures II and existing resources.

The financial impact will be recognised over time, depending on the timing of capital deployment and the performance of the fund's underlying investments.

The company said it would make further disclosures as required under applicable laws and Abu Dhabi Securities Exchange rules.