U.S. Approves UAE’s AI Initiative in $15 Billion Deal to Compete with International Competitors
The United States government has authorized
Microsoft’s commitment in the UAE totals $15.2 billion over seven years, with $5.5 billion dedicated to AI and cloud infrastructure and $1.5 billion invested in equity in G42, an AI firm based in Abu Dhabi, according to a
The decision by the U.S. Commerce Department demonstrates a careful strategy to balance national security with technological cooperation. The Trump administration updated technology regulations to allow the export of GB300 GPUs, highlighting Washington’s cautious approach to distributing AI chips, especially amid ongoing tensions with China, as noted by TechBuzz. Microsoft’s earlier investments in the UAE, which reached $7.3 billion between 2023 and 2024, paved the way for this expanded alliance, according to Yahoo Finance. The newly approved chips will support advanced AI systems from OpenAI, Anthropic, and Microsoft, helping to establish the UAE as a key player in AI innovation in the region, CNBC added.
The license approval has also strengthened investor sentiment, with Nvidia’s stock climbing 1.97% in premarket trading after the announcement, CNBC reported. This agreement is anticipated to boost overall confidence in AI-focused technology stocks, contributing to gains in U.S. markets. On the geopolitical front, the partnership carries weight, as the UAE’s AI goals align with U.S. efforts to counter China’s influence in technology. Microsoft’s collaboration with G42 has faced scrutiny in the U.S. due to G42’s previous connections with China, but Smith stated that G42 has made “significant strides” in meeting compliance requirements, according to Yahoo Finance.
