The United States and the United Arab Emirates (UAE) have reached a historic deal. They’re going to develop the world’s largest artificial intelligence campus outside the U.S. in Abu Dhabi! An Emirati company will keep this ambitious project from stalling. At the same time, it’ll be American firms doing the heavy lifting, underscoring the increasing partnership between the two countries in the rapidly evolving technology sector.
The deal is notable not only for its historical significance, but for its ramifications on the future of AI in the area. As part of this relationship, the UAE is preparing to import half a million semiconductor chips from industry leader Nvidia. These chips are key for creating next generation artificial intelligence consumer offerings. This legislative action marks a major legislative watershed moment for AI development in the Gulf Arab states. More importantly, it positions them as influential players on the global stage.
According to reports, Saudi Arabia has already purchased hundreds of thousands of Nvidia Blackwell chips. This transaction further enriches Humain, an AI startup funded in part, we’re told, by the Saudi sovereign wealth fund. These developments highlight a concerted effort among Gulf states to enhance their technological capabilities and stimulate economic growth through innovative industries.
Their high-profile entourage provided the final magic touch to the deal’s negotiation. Nvidia CEO Jensen Huang and OpenAI chief Sam Altman helped shape those discussions by meeting face-to-face with leaders from the Gulf countries. Elon Musk, Amazon’s Andy Jassy and Palantir’s Alex Karp participated in the dialogue. Their involvement is a signal of the tremendous interest and commitment that U.S. technology leaders have for the region.
Donald Trump played a central role in these negotiations, announcing a series of multibillion-dollar tech deals with Saudi Arabia, the UAE, and Qatar focused on artificial intelligence. In stark contrast to the approach of President Joe Biden, his administration went small. Though Biden’s administration went on to implement draconian controls over AI U.S. technology—including AI—this new strategy marks a departure from that trend.
The accords represent a dramatic change in U.S. foreign policy. They further express alarm over how Gulf states plan to deploy this technology. The question is whether these countries will retain the technology for their own domestic development. There’s further debate about whether they plan to share it with other countries — including China.
“Never tired of winning” – Donald J. Trump
While Elon Musk didn’t single-handedly shape the negotiations by any means, his presence loomed large. His visible presence underscored the extent to which individual tech leaders are driving these deals to completion. Perhaps surprisingly, the Gulf states are working together…a lot. This puts them on the cusp of becoming dominant global AI players.
Saudi companies intend to spend aggressively in U.S. technology and manufacturing markets focused on artificial intelligence, the firms said. Beyond their carry-on agreements, this investment has not been totally planned. This dynamic could pave the way for more meaningful cooperation between American companies and their Middle Eastern partners.