UAE Eyes Deeper Collaboration With US In AI Race After Microsoft's $1.5B Investment In Local Firm

The United Arab Emirates is making significant strides in the global AI race, with the U.S. as a key ally. The UAE’s AI Minister, Omar Sultan Al Olama, has hinted at a further collaboration with the U.S., following a $1.5 billion investment by Microsoft Corp. (NASDAQ:MSFT) in a local AI firm.

What Happened: The UAE is positioning itself as a global AI leader, and its partnership with the U.S. is a crucial part of this strategy. Olama, the country’s AI Minister, has indicated that the UAE and the U.S. are closely aligned in their approach to AI development, reported CNN.

UAE’s AI strategy is a key part of its plan to diversify its economy away from oil. The country aims to be a global AI leader by 2031, with a national strategy focused on deploying AI in priority sectors, developing an AI ecosystem, and attracting talent.

Despite its ties with the U.S., the UAE has also maintained a balance in its foreign policy. The country has a significant trade relationship with China, a key trade partner, and has had to make strategic decisions to prioritize its alliance with the U.S.

"The UAE put a stake in the ground in the AI race with Falcon," James Lewis, of the Center for Strategic and International Studies, said.

Analysts suggest that the UAE’s substantial oil wealth will play a crucial role in developing extensive and costly AI infrastructure, according to the report.

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Why It Matters: The UAE’s alignment with the U.S. in the AI sector comes amid heightened scrutiny of AI chip sales to the Middle East.

In May, the U.S. government temporarily halted the export of AI chips to the region, affecting companies like Nvidia Corp. (NASDAQ:NVDA) and Advanced Micro Devices Inc. (NASDAQ:AMD). This decision was part of a national security review of AI developments in the area.

Earlier in the year, the U.S. military confirmed its use of AI in Middle East operations, highlighting the strategic importance of AI technologies in combat scenarios. AI played a crucial role in over 85 airstrikes targeting facilities in Iraq and Syria.

Additionally, the UAE’s AI ambitions align with broader regional trends. For instance, Saudi Arabia launched its first AI-powered Intelligent Data Management Cloud (IDMC) platform in April, aiming to support its Vision 2030 goals.

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Image generated using Dall-E

This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote