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The United Arab Emirates (UAE) and the United States have entered into an accord for the UAE to develop the largest artificial intelligence (AI) campus outside of the U.S. This represents a significant agreement, especially considering past constraints due to Washington’s apprehensions regarding potential Chinese access to this cutting-edge technology. The deal signifies a stride in international tech cooperation and artificial intelligence advancement.
Details of the Landmark AI Agreement
Specific details regarding the inclusion of AI chips from Nvidia or other companies within UAE data centers remain undisclosed. However, sources indicate that this agreement will grant the Gulf nation enhanced access to advanced AI chips. Nvidia’s CEO Jensen Huang was seen conversing with UAE President Sheikh Mohamed bin Zayed Al Nahyan during President Trump’s visit to Abu Dhabi, highlighting the high-level engagement surrounding this deal.
A Win for the UAE
The consummation of this eagerly sought-after pact during President Trump’s visit to Abu Dhabi signifies a substantial achievement for the UAE. The UAE has been navigating a delicate balance in its relationships with its long-standing ally, the United States, and its primary trading partner, China. This agreement demonstrates the U.S. administration’s confidence in the secure management of these technologies, partly through the stipulation that U.S. companies will oversee data center operations.
The UAE, a key oil producer, is investing substantially to establish itself as a prominent global player in the AI sphere. Its connections with China previously curtailed its access to U.S. chips under the former administration.
According to a statement from the White House, “The AI agreement includes the UAE committing to invest in, construct, or finance U.S. data centers that are at least equivalent in size and capability to those in the UAE.”
“Additionally, the agreement encompasses significant commitments from the UAE to further harmonize its national security regulations with those of the United States, including robust safeguards to avert the diversion of U.S.-origin technology.”
Reuters previously reported that both nations had completed a technology framework agreement that necessitates mutual commitments to ensure the security of the technology.
Sources have indicated to Reuters that the UAE could potentially import 500,000 of Nvidia’s most sophisticated AI chips annually, commencing in 2025. Nvidia has refrained from commenting, and the UAE foreign ministry has not yet provided a response to requests for comment.
Key Components of the AI Campus
A central element of the agreement, as revealed on Thursday, is the establishment of a 10 square mile (25.9 square kilometer) artificial intelligence (AI) campus in Abu Dhabi, boasting a power capacity of 5 gigawatts for AI data centers, according to the Commerce Department.
Lennart Heim, an analyst at Rand Corporation, noted on X that this surpasses all other major AI infrastructure announcements to date. He estimates that this power capacity is sufficient to support 2.5 million of Nvidia’s top-tier B200 chips.
G42, a state-backed firm from Abu Dhabi, will spearhead the construction of the campus. Secretary of Commerce Howard Lutnick stated that “American companies will manage the data centers and provide American-managed cloud services across the region.”
U.S. fact sheets also highlight chip company Qualcomm’s work on an AI-related engineering center and Amazon Web Services’ collaboration with local partners on cybersecurity and cloud adoption.
Evolving International Relations and AI Tech
The United States has historically implemented protectionist measures to restrict China’s access to advanced semiconductors, aiming to prevent their diversion through third-party channels.
However, regulations are being relaxed under the current administration. David Sacks, the AI czar, indicated that export controls were not intended to target allies or strategic partners.
The enhanced access granted to the UAE for the most advanced chips, produced by companies like Nvidia, marks a significant shift.
Mohammed Soliman, a senior fellow at the Middle East Institute, stated, “This shift allows the UAE to strengthen its technology alliance with the U.S. while maintaining trade relations with China.”
He added, “It does not imply abandoning China but rather recalibrating its technology strategy to align with U.S. standards and protocols in critical areas like compute, cloud, and chip supply chains.”
UAE’s Strategic Investments
AI was a key topic during UAE President Sheikh Mohamed bin Zayed Al Nahyan’s visit to Washington in December. G42 and MGX, the state-affiliated entities driving the UAE’s AI investment efforts, have invested in U.S. firms such as OpenAI and Elon Musk’s xAI. Additionally, Microsoft agreed to invest $1.5 billion in G42 last year.
- G42 and MGX invested in U.S. firms.
- Microsoft invested $1.5 billion in G42.
These agreements were supported by security assurances, and G42 previously removed Chinese hardware and divested Chinese investments under U.S. pressure.
Ongoing Presence of Chinese Firms
Despite these measures, prominent Chinese companies like Huawei and Alibaba Cloud maintain a presence in the UAE. Furthermore, AI chip smuggling activities to China have been traced through countries including Malaysia, Singapore, and the UAE.