Author: TechFlow
In February, at a private event in Abu Dhabi, Binance founder CZ and OpenAI founder Sam were both present.
A magical force connected the two, as they shared a common investment institution - the Abu Dhabi sovereign wealth fund MGX.
On March 12, Binance announced that it had received a $2 billion investment from MGX.
The chairman of the MGX board of directors, Sheikh Tahnoon bin Zayed Al Nahyan (hereinafter referred to as Tahnoon), is the behind-the-scenes patron who orchestrated all of this.
Tahnoon has a "Title" like a dragon mother: son of the UAE's founding father, National Security Advisor of the UAE, Deputy Ruler of Abu Dhabi, brother of the UAE President, Chairman of the Abu Dhabi Investment Authority (ADIA), Chairman of the Royal Group, Chairman of the largest bank in the UAE, First Abu Dhabi Bank, Chairman of the Abu Dhabi Development Holding Company (ADQ), Chairman of International Holding Company (IHC), and Chairman of the largest AI company in the Middle East, G42.
At the age of 56, he controls the UAE's purse strings, with assets totaling $2 trillion.
This is not Tahnoon's first investment in cryptocurrency-related companies.
Previously, Tahnoon's company IHC invested in the cryptocurrency group Phoenix, which is listed in Abu Dhabi, with its core business being the world's largest bitcoin mining farm, Phoenix Miner, which owns 7% of the global bitcoin network's computing power, and operates a $650 million joint venture mining farm with the sovereign wealth fund ADQ in Abu Dhabi.
In addition, Phoenix also owns the exchange M2.com and the cryptocurrency investment firm Cypher Capital. It is worth noting that the senior executive of the Phoenix Group and the chairman of Cypher Capital, Bill Qian, is the former head of Binance Labs.
Tahnoon is now not only the patron of the world's largest exchange and bitcoin mining farm, but also the patron of the world's largest AI company, with investments in OpenAI, xAI, and Anthropic.
A long-time businessman in the Middle East told TechFlow that to identify Tahnoon is simple, as he always wears sunglasses, whether indoors or outdoors, because he is sensitive to light.
To meet with Tahnoon, one must first deal with his trusted inner circle, or intersect with his hobbies: Brazilian jiu-jitsu, cycling, video games, chess, and longevity (he aims to live to 150 years old).
A few lucky ones can board his superyacht Maryah and play chess in the sunshine of the Persian Gulf.
Cryptocurrency may just be an appetizer, as Tahnoon is currently a fervent AI devotee, pouring huge sums of money into a high-stakes bet on AI, yet deeply embroiled in the China-US confrontation, and even as a figure of such power, he must choose sides between China and the US.
Hobbyist: From Chess to AI
Born in 1968, Tahnoon was raised in privilege as one of the six sons of Zayed, the founding father of the UAE, and was seen as his main heir apparent.
In the mid-1990s, Tahnoon came to Southern California, USA, and trained at a Brazilian jiu-jitsu center in San Diego under the name "ben", reportedly being humble and often arriving early to help set up the venue, until he later revealed his true identity as a prince from Abu Dhabi.
Brazilian jiu-jitsu also became one of his lifelong hobbies, and in 1998 he co-founded the ADCC Submission Wrestling World Championship with Brazilian jiu-jitsu coach Nelson.
Tahnoon is also a cycling enthusiast. He converted a palace in the royal estate into a gym, sponsored the global top cycling team UAE Team Emirates, and rode on an island near the presidential palace, which he transformed into a cycling paradise.
He is particularly fond of the ultra-lightweight Colnago bicycles, and even had a company acquire a majority stake in the Italian brand in 2020, showcasing his financial prowess.
But Tahnoon's greatest passion may be chess.
In the mid-2000s, a small supercomputer called Hydra (nine-headed serpent) located in Abu Dhabi was crowned the world's best chess player. This was a 64-bit supercomputer with a 3.06GHz Intel Xeon processor, capable of 200 million calculations per second and thinking 40 moves ahead.
Hydra's chief designer, Chrilly, said their boss was the most enthusiastic computer chess enthusiast, mentioning that "this patron liked to play games with Hydra day and night."
This mysterious patron, using the alias "zor_champ", participated in online chess competitions, forming a human-machine team with Hydra and often defeating opponents with overwhelming superiority.
This mysterious patron was Tahnoon.
In late 2017, Google's AlphaZero defeated the world's strongest chess players after just four hours of learning, far surpassing Hydra's performance, which shocked Tahnoon and made him realize the potential of AI.
The following year (2018), he appointed former MicroStrategy CTO Peng Xiao as CEO and founded the artificial intelligence company G42.
If you're a sci-fi fan, you should be able to understand the deeper meaning, as 42 is the answer to the ultimate question of life, the universe, and everything in "The Hitchhiker's Guide to the Galaxy". There's a small Easter egg - if you search "the answer to life, the universe, and everything" on Google, the result is 42.
G42 is hailed as the "Alibaba + Tencent of the Middle East" and is the leader in the AI field in the UAE and the Middle East region. G42 currently has AI companies Core42, AIQ, and Presight, healthcare company M42 and Hayat Biotech, data center service provider Khazna, and geospatial intelligence company Bayanat.
G42's management team includes Chinese figures, such as G42 CEO Peng Xiao and Hayat Biotech CEO Cong Hongbin. Its G42 Expansion Fund (42X Fund) has an office in Shanghai and has recruited Hu Ningfeng, former vice president and head of strategic investment at JD Group, to join the 42X Fund as the China regional head in 2023.
Image: Peng Xiao
Power Struggle and Transactions
Although Tahnoon, the winner of the uterine lottery, is the envy of countless people, he has still faced challenges in his life.
The UAE's founding father, Zayed, had about 20 sons, and Tahnoon and his brother Mohamed belong to the "Bani Fatima" group - the six sons born to Zayed's most beloved wife, Fatima.
After Zayed's death in 2004, Tahnoon's brother Khalifa became the UAE President, while the eldest Bani Fatima brother, Mohamed, was appointed Crown Prince.
In 2014, President Khalifa suffered a severe stroke, and Mohamed took over the affairs of the state, leading to a contest for the next Crown Prince.
Tahnoon insisted on maintaining tradition, that is, Zayed's sons should continue to hold power as long as they are physically and mentally fit, making him the most competitive potential candidate.
Mohamed insisted that his son Khalid should be appointed as the Crown Prince.
Regarding this, Tahnoun even presented evidence showing that Muhammad's strategy went against their father's will for the successor. This inevitably reminds one of the many stories of uncles and nephews seizing power in Chinese history.
Ultimately, this struggle ended with negotiations and compromises, with the two brothers reaching an agreement: Tahnoun gave up becoming the crown prince in exchange for major control over the country's economic assets.
In 2023, Tahnoun was appointed chairman of the Abu Dhabi Investment Authority (ADIA), the country's largest sovereign wealth fund. A few weeks later, Khalid was appointed crown prince.
Since then, Tahnoun has become the "CFO" of the UAE, managing the two largest sovereign wealth funds, ADIA and ADQ, the largest bank in the UAE, First Abu Dhabi Bank, as well as his vast business empire covering real estate, agriculture, healthcare, energy, industry, shipping, catering and retail.
According to the latest data from Global SWF, Tahnoun controls over $2 trillion in assets.
However, according to US media reports, in recent years, people who have had contact with Abu Dhabi have consistently reported that Tahnoun's power has expanded significantly, going beyond the financial sector, as he is responsible for diplomatic contacts with Iran, Qatar and Israel, and has established connections with people in Trump's circle.
MGX participated in the $6 billion financing of xAI, a company under Musk, and its asset management company Lunate added $1.5 billion to the Affinity managed by Jared Kushner, Trump's son-in-law.
Tahnoun's power is not only manifested in wealth control, but also extends to the fields of intelligence and technology. As a national security advisor, he controls the UAE's intelligence agencies and uses them to establish G42, which is deeply involved in artificial intelligence and biotechnology.
After resolving the power struggle, Tahnoun encountered a new challenge on the AI path: geopolitical conflicts.
AI and Geopolitics
Before 2023, G42 maintained close cooperation with the Chinese tech giant Huawei, and a large number of Chinese executives were involved in the company's operations, which also made the US hawks very dissatisfied.
"You have to choose a side," said Gina Raimondo, the former US Secretary of Commerce, who clearly stated during a meeting in Washington in 2023: "Welcome investment, but you can't straddle the US and China."
In August 2023, the US implemented major restrictions, restricting the export of NVIDIA graphics processors (GPUs) to the Middle East, and any company using Huawei technology was prohibited from receiving these exported products.
Forced to choose, Tahnoun had to make a choice.
In early 2024, G42 announced that it would sever ties with China and remove all Chinese-made technology, including Huawei routers in G42 offices, and G42 also sold its shares in ByteDance.
In April 2024, Microsoft announced a $1.5 billion investment in G42, acquiring a minority stake, and Microsoft President Brad Smith joined the G42 board of directors.
In the summer of 2024, Tahnoun embarked on a diplomatic tour of the US, meeting with tech giants like Musk, Zuckerberg, Bill Gates, Satya Nadella (Microsoft CEO) and Bezos (Amazon founder), and also discussing with National Security Advisor Jake Sullivan, Commerce Secretary Gina Raimondo, and even President Biden at the White House.
On the other hand, in March 2024, Tahnoun led the establishment of the investment firm MGX, collaborating with BlackRock and Microsoft, investing in the AI industry, or more accurately, investing in US AI.
Ahmed Yahia, the CEO of MGX, stated that the company plans to allocate 70% to 80% of its funds to the US. MGX has made major investments in OpenAI, Musk's xAI, and Anthropic supported by Amazon, and is also a minority supporter of SoftBank's "Stargate" project.
These efforts were soon rewarded. The US has authorized NVIDIA to sell GPUs to G42, some of which are already being used in Abu Dhabi, including a large number of NVIDIA H100s.
In the wave of global AI competition, Tahnoun's strategic shift is not just a business decision, but a major bet on the fate of the nation.
When we examine this Sino-US tech rivalry, we can see that whether it's tech giants, national leaders, or even royal family members controlling trillions of assets, they are all just participants in the historical tide, each placing their bets on an uncertain future.
