UAE will construct the largest artificial intelligence campus outside of the US following the sealing of a historic deal during Donald Trump’s recent Middle East visit.
The Abu Dhabi 10-square-mile mega-project is a landmark in US technology policy and a testament to increasing confidence in the UAE as a reliable partner in high-tech development.
The Thursday agreement will provide the Gulf state broader access to state-of-the-art AI chips, with reports indicating that the UAE will be able to import a maximum of 500,000 of Nvidia’s best AI chips every year from next year.
US and UAE Strike Landmark AI and Technology Security Deal
Nvidia CEO Jensen Huang was also seen talking to Trump and UAE President Sheikh Mohamed bin Zayed Al Nahyan during the signing ceremony, at an Abu Dhabi palace.
The deal is a huge win for the UAE, which has been walking a tightrope in its relations with old ally America and biggest trade partner, Chin.. The Gulf state has invested billions in its ambition to become a global AI powerhouse but faced restrictions accessing US chips during the Biden administration.
“The agreement includes the UAE committing to invest in, build or finance US datacenters that are at least as large and as powerful as those in the UAE,” according to a White House statement. It also contains “historic commitments by the UAE to further align their national security regulations with the United States, including strong protections to prevent the diversion of US-origin technology.”
Central to the deal is the massive AI campus to be built by Abu Dhabi state-backed firm G42, featuring 5GW of power capacity for AI datacenters. US Commerce Secretary Howard Lutnick emphasized that “American companies will operate the datacenters and offer American-managed cloud services throughout the region.”
The agreement also involves chip company Qualcomm developing an AI-related engineering center, while Amazon Web Services will collaborate with local partners on cybersecurity initiatives and cloud adoption.
This policy shift represents a sharp turn from previous US restrictions aimed at preventing China from accessing advanced semiconductors through third parties. Trump’s AI czar, David Sacks, acknowledged this change while in Riyadh on Tuesday, stating that the Biden administration’s export controls were “never intended to capture friends, allies, strategic partners.”
UAE Navigates US-China Tech Rivalry with Strategic AI Partnership
Mohammed Soliman, senior fellow at the Middle East Institute, explained the significance: “This shift enables [the UAE] to deepen its technology partnership with the US while still preserving trade ties with China. It doesn’t mean abandoning China but it does mean recalibrating tech strategy to align with US standards and protocols where it matters most: compute, cloud and chip supply chains.”
The UAE has been actively pursuing AI development, with state-linked vehicles G42 and MGX driving investment efforts. These entities have backed US firms like OpenAI and Elon Musk’s xAI, while Microsoft invested $1.5 billion in G42 last year.
Despite security assurances and G42’s efforts to remove Chinese hardware and investments under US pressure, concerns remain. Major Chinese companies like Huawei and Alibaba Cloud maintain a presence in the UAE, and reports have surfaced of organized AI chip smuggling to China from several countries, including the UAE.
The deal underscores the complex geopolitical dynamics surrounding AI technology as the US seeks to maintain its technological edge while China emerges as a serious competitor. Critics worry that such partnerships could potentially weaken America’s grip on AI innovation or create backdoor access for Chinese interests, despite the safeguards outlined in the agreement.
For the UAE, the partnership represents a crucial step in its technological ambitions while navigating the delicate balance between its strategic relationships with both global powers.
