Now, UAE Forges US Tie-Up With $1.5B Deal To Become Global AI Powerhouse

The United Arab Emirates is pursuing a strategic partnership with the United States in artificial intelligence, aiming to leverage its petrochemical wealth to emerge as a global AI powerhouse.

What Happened: According to Omar Sultan Al Olama, the UAE's AI minister, a recent $1.5 billion deal with Microsoft to invest in Abu Dhabi's AI firm G42 marks the beginning of deeper tech collaboration between the two nations, Financial Times reported on Tuesday. This agreement followed extensive negotiations between U.S. and U.A.E. officials, leading to G42's commitment to phase out Chinese systems.

Al Olama stated, "Now you're going to see the outcomes of that marriage, if I may use that word, between both G42 and Microsoft, but also the UAE and the United States."

He emphasized the necessity of coordinating with U.S. players in frontier technology and reassuring the U.S.

The U.A.E., backed by sovereign wealth funds worth approximately $2 trillion, is intensifying its AI efforts to reduce reliance on fossil fuels. Abu Dhabi has established the investment vehicle MGX, chaired by national security adviser Sheikh Tahnoon bin Zayed al-Nahyan, which has been in discussions with OpenAI regarding chip development plans.

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Despite fierce global competition, the U.A.E.'s significant capital access is a key advantage. Industry leaders, including OpenAI's Sam Altman and Nvidia's Jensen Huang, have been drawn to the nation, anticipating substantial AI investments from Abu Dhabi.

Why It Matters: The UAE’s push for AI collaboration with the U.S. comes amid heightened scrutiny of AI technology transfers. Recently, the U.S. government temporarily halted the export of AI chips to the Middle East, citing national security concerns. This move has affected companies like Nvidia and Advanced Micro Devices, highlighting the sensitive nature of AI technology in international relations.

The partnership with Microsoft has also raised concerns about the transfer of key U.S. AI technology abroad. U.S. officials are wary of potential national security risks, including the use of AI systems in weapon creation.

OpenAI CEO Sam Altman has emphasized the importance of international regulation to ensure AI safety. Altman advocates for a balanced approach to regulation, warning against both overreach and insufficient oversight.

Additionally, the U.A.E. has been proactive in attracting foreign investment through initiatives like the proposed 10-year “golden” business licenses. These measures aim to boost economic growth and align with the “We are the UAE 2031” vision.

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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari