The AI Race Is On: UAE and US Forge AI Cooperation Amid Global Tech Push

At A Glance

• UAE and US deepen AI cooperation as Sheikh Mohamed seeks access to US-made AI tech during his first US trip in seven years.
• UAE aims to replace oil revenue with AI growth; partners with Nvidia, BlackRock, and Microsoft on a $30B data fund.
• OpenAI's Sam Altman in talks with UAE on a $7T AI chip project as the UAE pushes to lead global AI advancements.

The United Arab Emirates is making a bold move to secure its position as a leader in artificial intelligence, with Sheikh Mohamed bin Zayed al-Nahyan meeting US President Joe Biden to deepen AI cooperation between the two nations. As the UAE shifts focus from its traditional oil-based economy to a more tech-driven future, artificial intelligence is seen as a key pillar in the country's transformation. In this highly strategic first official trip to the US in seven years, Sheikh Mohamed aims to unlock easier access to US-made AI technology. "We cannot let this sort of wave of technological breakthroughs pass by us," said Anwar Gargash, Sheikh Mohamed’s diplomatic adviser, highlighting the urgency behind the UAE’s tech ambitions.

The visit also solidified UAE's status as a "major defence partner" alongside India, aiming to strengthen security ties with joint military training and exercises. Despite the positive developments in AI cooperation, the meeting comes amidst some strained relations, as talks for a formal security pact have stalled. Moreover, concerns about technology leaks to China have led the US to impose restrictions on the UAE's import of cutting-edge AI chips, creating hurdles for Emirati companies. These export controls, as Microsoft’s president Brad Smith noted, have slowed down progress, but “clarity” is now emerging on the issue.

The UAE's Ambitious AI Plans

In a strong push to strengthen ties with US companies, the UAE’s AI powerhouse G42 has teamed up with Nvidia to launch a weather forecasting initiative. Abu Dhabi’s investment vehicle, MGX, further signalled its AI ambitions by partnering with BlackRock, Global Infrastructure Partners, and Microsoft to create a $30 billion fund for data centres and energy solutions. AI, cloud computing, and other emerging technologies are now central to the UAE’s goal of reducing its reliance on fossil fuel exports. Gargash emphasised, "If we believe that hydrocarbon is on the way out, slowly but surely, then we have to replace the revenue stream through something else."

Notably, Sheikh Mohamed's diplomatic efforts have also opened doors to larger AI infrastructure projects. OpenAI’s Sam Altman has been in discussions with Sheikh Tahnoon bin Zayed al-Nahyan, the UAE’s national security adviser, over financing a groundbreaking chipmaking project.

Altman’s ambitious vision estimates AI infrastructure costs to soar as high as $7 trillion in the coming years, attracting nation-states like the UAE to fill the funding gap left by traditional venture capitalists. As Sheikh Tahnoon spearheads negotiations, his deep understanding of tech is seen as a major asset in securing these pivotal AI collaborations.

As AI development accelerates globally, it’s clear that the race is on—and the UAE is positioning itself to lead the charge alongside major players like the US.