Abu Dhabi’s MGX is nearing an investment in Anthropic as part of a funding round expected to exceed $20 billion, according to people familiar with the matter. The round, if completed, would value Anthropic at roughly $350 billion, though deal terms could still shift. No final agreement has been announced.
For public-market investors, the development is particularly noteworthy because Anthropic is a private holding within the KraneShares Artificial Intelligence & Technology ETF (AGIX), underscoring the growing trend of ETFs gaining exposure to pre-IPO AI companies.
Last week, AGIX’s exposure to another private AI name, Elon Musk’s xAI was effectively transformed as xAI merged into SpaceX, with AGIX’s xAI shares converted into SpaceX equity positions following the deal. This conversion illustrates how AGIX’s private holdings can evolve when private companies execute liquidity or merger events, potentially offering listed ETF holders indirect exposure to future outcomes.
MGX and Anthropic: The Funding Round in Focus
MGX’s potential investment forms part of Anthropic’s latest capital raise, which is expected to exceed $20 billion and could value the company at approximately $350 billion, according to Bloomberg. The Abu Dhabi-based investment vehicle is said to be considering a commitment of several hundred million dollars, though final terms have not been confirmed.
For Anthropic, the round would represent another step in scaling its position among leading AI model developers, following rapid revenue growth and expansion into financial and legal AI applications. For MGX, the transaction would further extend its exposure to frontier AI platforms, adding to prior investments across the sector and reinforcing Abu Dhabi’s broader push into advanced technology assets.
What AGIX Is and Why It Matters
AGIX was launched in July 2024 with a unique hybrid model designed to combine liquid public stocks with limited private company exposure under SEC Rule 22e-4, which restricts illiquid investments to no more than 15% of net assets. It aims to provide exposure to the broader AI ecosystem including hardware, software, and foundational AI models through a mix of publicly traded equities and select private equity stakes.
Unlike traditional AI-thematic ETFs that only hold listed stocks such as Nvidia, Microsoft, Meta, and Alphabet, AGIX directly holds private AI companies on their capitalization tables. It added Anthropic in early 2025, and its stake in private xAI was originally acquired in mid-2025 before being converted into SpaceX shares after the merger. These private positions are valued daily using internal fair-value processes but do not trade on public exchanges.
As of early 2026, private holdings like SpaceX and Anthropic accounted for material portions of AGIX’s portfolio, with xAI/SpaceX and Anthropic each representing several percentage points of net assets and reinforcing the fund’s differentiated positioning relative to standard AI ETFs.
ETFs and Private Exposure: How AGIX is Different
AGIX remains one of the very few ETFs that hold private technology companies directly rather than through external structures like special purpose vehicles (SPVs). For example:
1-Many themed ETFs use SPVs or derivative structures to indirectly participate in private rounds but those vehicles can introduce extra fees, governance layers, and liquidity restrictions.
2-AGIX sits on the cap table for its private holdings, meaning it has equity directly registered on the books of companies such as Anthropic and SpaceX.
While relatively rare today, other vehicles aim to combine public and private exposure for example, XOVR’s entrepreneurial ETF includes SpaceX via an SPV and large cap tech stocks, and funds like the Baron First Principles ETF (RONB) have significant exposure to private companies such as SpaceX albeit at higher allocation limits given differing liquidity frameworks than AGIX’s GETF structure.
Impact on Investors
The inclusion of pre-IPO companies within ETFs such as AGIX reflects a broader shift in the ETF industry, one that blurs traditional boundaries between liquid public markets and private capital. ETFs now span an expanding universe of strategies, from broad indexes to pre-IPO hybrid vehicles that aim to capture growth earlier in a company’s life cycle.
For investors, this trend means:
- Access: Retail and institutional holders can indirectly participate in private AI growth without needing accredited-only access.
- Valuation Complexity: Private holdings are not priced daily through markets, and fair-value estimates may lag secondary transactions or funding rounds.
- Risk Profile: Private holdings carry different risk characteristics including less liquidity and potentially greater valuation volatility than traditional public equities.
Takeaway
As Anthropic’s funding round nears conclusion and SpaceX holds open potential for a future IPO, AGIX stands out as a rare publicly traded ETF that bridges public equity and private AI investment. It exemplifies the evolving ETF landscape where investors can pursue pre-IPO exposure within regulated retail vehicles, a development that broadens access but also demands a clear understanding of valuation and structural risk
