Alterra's investments designed to hedge against AI bubble, says chief executive

Alterra, the UAE's $30 billion climate investment vehicle, has implemented an AI-focused investment strategy designed to safeguard against potential AI sector bubbles, claims its CEO Majid Al Suwaidi. The fund prioritizes investing in energy systems powered by AI rather than direct AI technology, acting as a "hedge" against any AI bubble burst, he told The National.

Alterra's approach involves investing in the energy systems that AI will inevitably rely on, whether for factories, homes, schools, or hospitals, ensuring continued demand for energy systems even if the AI sector experiences a downturn. The CEO's comments came as the Abu Dhabi-based company partnered with Milan-based Domyn, a leading sovereign AI company, to develop a proprietary climate intelligence system.

Once completed, Alterra will own and control the system, potentially transforming it into an AI-native organization. The system, which will be built in phases, will become prominent in the coming year. Al Suwaidi emphasized that the partnership underscores Alterra's confidence in AI technology, which he believes will be pivotal in future economic development.

Alterra, led by Dr. Sultan Al Jaber, aims to raise $250 billion globally by 2030 to foster a more equitable climate finance system. The company has grown into three funds and has over 60 portfolio companies across more than 40 countries, supporting more than 100GW of renewable energy capacity. Recent investments include Inkia in Peru, Wireless Logic alongside General Atlantic, and Jeppesen ForeFlight with Thoma Bravo.