UAE-US Forge $700 Billion AI Alliance, Launch Landmark Projects in Abu Dhabi
May 29, 2025
The UAE's Falcon AI model is not just a technical achievement; it is also a strategic move to establish Abu Dhabi as a data and compute hub for emerging markets.
In a significant development, Abu Dhabi-based G42 is constructing a 5-gigawatt AI data campus, which will become the largest AI infrastructure project outside the US, thereby enhancing regional AI capabilities.
The UAE's AI strategy is part of a broader national goal to diversify its economy and enhance its geopolitical influence beyond oil dependency.
The strategic partnership between the UAE and the US aims to position both nations as global leaders in artificial intelligence (AI).
During a recent visit to the Gulf, former President Trump announced $200 billion in commercial agreements that will enhance U.S.-UAE tech cooperation and initiate significant joint ventures.
A key initiative, the Stargate Project, launched by OpenAI in collaboration with UAE's MGX and Japan's SoftBank, seeks to create a $500 billion AI investment vehicle, with a 200-megawatt AI cluster set to launch in Abu Dhabi by 2026.
This partnership emphasizes sustainable infrastructure, leveraging nuclear, solar, and natural gas energy sources to reduce carbon emissions.
To maintain access to critical American technology, including Nvidia chips, the UAE has severed financial ties with Chinese firms, including divesting from ByteDance.
The UAE–U.S. AI Campus will span 10 square miles, with its first phase expected to commence operations in 2026, providing substantial AI computing power.
Both nations aim to align their regulatory frameworks for ethical AI development, focusing on privacy standards and algorithmic transparency to foster cross-border innovation.
Trump's administration is also planning to roll back export restrictions on advanced AI technology, which could facilitate easier access for allies like the UAE.
In a broader context, Africa, particularly Ghana, is encouraged to invest in AI to avoid marginalization and leverage Gulf investments in technology and infrastructure.
Summary based on 2 sources
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Sources

The Business & Financial Times • May 29, 2025
Why UAE-US AI partnership is a greenlight to accelerate AI investment
Inventiva • May 28, 2025
In 2025, The New Oil Is AI, And The U.S. Wants To Drill In The UAE