Abu Dhabi investment firm MGX is in talks to invest in generative AI company Anthropic.

MGX could invest hundreds of millions in Anthropic's latest round, which is expected to raise more than $20 billion, Bloomberg reports. The round could value the company at around $350bn.

State-owned MGX invested in Anthropic last year, and has also invested in xAI and OpenAI. It is one of the backers of OpenAI's data center joint venture, Stargate, and Mistral's French data center plans.

Last year, MGX and BlackRock acquired data center firm Aligned, in the largest such deal in the digital infrastructure space. This January, BlackRock said that it had raised $12.5bn for an AI investment partnership, backed by MGX, Microsoft, Nvidia, and xAI.

Also, this January, MGX took a 15 percent stake in the newly formed US version of TikTok.

The company's chairman, Tahnoun bin Zayed Al Nahyan, is the National Security Advisor to the UAE and brother of UAE President Mohamed bin Zayed Al Nahyan. He also chairs AI company G42, which is involved in building Stargate UAE and has a large deal with Cerebras.

With Anthropic raising money from MGX, as well as the Qatar Investment Authority, CEO Dario Amodei last year said that taking money from state-backed Middle Eastern funds was a necessary compromise.

In a leaked memo, he wrote that this would enrich “dictators,” but that “unfortunately, I think ‘No bad person should ever benefit from our success’ is a pretty difficult principle to run a business on.”