UAE-US Forge $700 Billion AI Alliance, Launch Landmark Projects in Abu Dhabi

May 29, 2025
UAE-US Forge $700 Billion AI Alliance, Launch Landmark Projects in Abu Dhabi
  • 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

Why UAE-US AI partnership is a greenlight to accelerate AI investment

The Business & Financial Times • May 29, 2025

Why UAE-US AI partnership is a greenlight to accelerate AI investment

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