MGX, the Abu Dhabi-based artificial intelligence investment firm, has co-invested with the private equity firm Silver Lake to acquire a controlling 51% stake in Altera, the programmable chip business formerly owned by Intel Corporation (Nasdaq: INTC). Intel retains a 49% stake in Altera following the transaction, which closed on September 12, 2025. The size of MGX’s investment has not been disclosed. This move illustrates the escalating interest in AI and semiconductor sectors by strategic investors globally.
Altera, headquartered in California, specializes in programmable chips, including field-programmable gate arrays (FPGAs) and system-on-chip (SoC) devices, which serve crucial roles in various industries such as telecommunications, data centers, and industrial robotics. These chips are prized for their adaptability, enabling reprogramming post-manufacture to meet specific performance or application requirements. MGX’s chief investment officer for semiconductors and infrastructure, Omar Alismail, described Altera as “a foundational platform for the upcoming generation of computing.” He said this opportunity allows expanding Altera into a substantial global player suitable for the demands of the advancing AI era.
Intel originally acquired Altera in 2015 for nearly $17 billion, but the latest deal values the unit at $8.75 billion, with the 51% share equating to roughly $3.3 billion. Intel’s decision to divest the majority stake aligns with CEO Lip-Bu Tan’s plan to focus on Intel’s core businesses as part of a company turnaround effort. Retaining 49% means Intel still benefits from Altera’s future growth while freeing resources to prioritize its other operations. The deal attracted attention as part of broader strategic repositioning within the semiconductor industry amidst the growing AI wave.
MGX itself is a relatively new but influential player in the AI investment space. Founded in 2024 by Mubadala Investment Company, the sovereign wealth fund of Abu Dhabi and G42, an AI-focused investment firm also based in the emirate, MGX aims to manage a portfolio valued in the hundreds of billions of dollars focused on AI and advanced technologies worldwide. It quickly rose as a key instrument in Abu Dhabi’s ambition to lead in artificial intelligence innovation and infrastructure investment. The firm is chaired by Sheikh Tahnoon bin Zayed Al Nahyan, the UAE’s national security adviser and brother to the country’s president, who oversees a sprawling business empire worth $1.5 trillion.
In recent months, MGX has deepened its footprint by participating in large-scale AI infrastructure funding initiatives, including a $30 billion partnership with BlackRock and Microsoft to build data centers and energy infrastructure that support AI applications. The Altera acquisition fits neatly into MGX’s broader strategy to invest where artificial intelligence is creating new technology needs, especially in semiconductor platforms that underpin next-generation applications.
Silver Lake brings extensive experience as a technology-focused private equity powerhouse, specializing in scaling companies in critical sectors. Partnering with MGX provides mutual leverage: Silver Lake taps into MGX’s AI investment vision and scale, while MGX gains Silver Lake’s operational and strategic expertise within the technology and semiconductor markets.
This acquisition highlights an ongoing shift in the semiconductor sector. As AI continues to drive demand for more specialized, high-performance chips capable of handling intensive computing tasks, investors and operators alike are recalibrating their portfolios and partnerships to capitalize on that growth. Altera stands at the intersection of programmable logic and AI-optimized computing, making it a notable asset for those aiming to shape future tech infrastructure.
Intel’s move, MGX’s entry, and Silver Lake’s participation reflect the broader realignment of value and leadership within the industry. For MGX, this partnership offers a platform to accelerate global ambitions while anchoring UAE’s expanding influence in the AI economy. For Altera, new ownership could mean heightened innovation and global reach for its programmable chip technology.
The Altera deal is more than just about one company changing hands; it underscores the rise of AI as a strategic investment theme driving realignments in the global semiconductor market.
