The United Arab Emirates (UAE) has entered into a partnership with the United States to establish the largest artificial intelligence (AI) campus outside of America. This agreement is part of several initiatives focused on AI that were discussed during Donald Trump’s recent visit to the region.
However, the deal has sparked some worries due to potential restrictions that could have been imposed by the previous administration, largely stemming from concerns about Chinese access to advanced technology.
Under this agreement, the UAE will gain enhanced access to high-tech AI chips. While specific details about the chips to be included in the data centers were not disclosed by either party, sources indicate that the UAE might be permitted to import up to 500,000 advanced AI chips from Nvidia annually, starting in 2025.
Nvidia’s CEO, Jensen Huang, was notably seen speaking with Trump and UAE President Sheikh Mohamed bin Zayed Al Nahyan during a televised event in Abu Dhabi.
This agreement marks a significant achievement for the UAE, which is striving to maintain its relationship with the US while also engaging with its largest trading ally, China. The Gulf nation has been investing heavily to establish itself as a key player in the global AI arena but faced challenges in acquiring US-made chips during President Biden’s tenure.
The arrangement demonstrates the Trump administration’s belief that the distribution of these chips can be effectively controlled, particularly by stipulating that the data centers must be operated by American firms.
The United States has historically led in AI technology and development, yet China has emerged as a formidable contender over the past year. Despite Trump’s optimism, there are concerns that forging alliances with Gulf nations might weaken the US’s influence in this rapidly growing sector. Additionally, there are apprehensions about potential Chinese access to these datacenters.
Leading executives from AI and semiconductor companies, including OpenAI’s Sam Altman and Nvidia’s Huang, seem to endorse this initiative, as it could amplify their products’ global reach and significantly boost their profitability.
According to the White House, the agreement entails the UAE’s commitment to invest in, construct, or finance US data centers that are equal in size and capability to those in the UAE.
Furthermore, the deal includes commitments from the UAE to align its national security regulations closely with those of the US, incorporating robust safeguards to prevent the misuse of US-origin technology.
A key component of the agreement is a 10-square-mile (25.9 square kilometers) AI campus in Abu Dhabi, which will have a power capacity of 5GW specifically for AI data centers, as stated by the US Department of Commerce.
The construction of the campus will be handled by G42, a company backed by the Abu Dhabi government. However, US Commerce Secretary Howard Lutnick emphasized that American firms would manage the data centers and provide American-controlled cloud services across the region.
Additionally, the US fact sheets indicated collaboration with Qualcomm to establish an AI-focused engineering center, while Amazon Web Services will partner with local entities to enhance cybersecurity and promote cloud technology adoption.
In recent years, the US has implemented protectionist measures aimed at limiting China’s access to cutting-edge semiconductors, ensuring that chips do not reach the country via other channels.
Regulatory barriers are loosening under Trump’s leadership, with the AI overseer, David Sacks, stating in Riyadh that the Biden administration’s export controls were “never meant to include friends, allies, or strategic partners.”
Granting the UAE increased access to advanced chips produced by companies like Nvidia signifies a significant shift in policy.
Mohammed Soliman, a senior fellow at the Middle East Institute, commented, “This shift enables the UAE to deepen its technology partnership with the US while still maintaining trade relationships with China.” He added that this does not mean severing ties with China, but rather realigning its tech strategy to conform to US standards, particularly regarding computing, cloud services, and chip supply chains.
AI was a prominent topic during Bin Zayed Al Nahyan’s visit to Washington in the final days of Biden’s presidency.
G42 and MGX, organizations linked to the state chosen to spearhead the UAE’s AI investments, have also put money into US companies such as OpenAI and Elon Musk’s xAI. Additionally, Microsoft had previously agreed to invest $1.5 billion in G42.
Both companies have stated that the negotiation process was supported by security guarantees, and under US advisement, G42 has previously taken steps to eliminate Chinese hardware and divested from Chinese holdings.
However, major Chinese corporations, including Huawei and Alibaba Cloud, remain active in the UAE, and it was reported that AI chip smuggling operations to China have been established from countries like Malaysia, Singapore, and the UAE.