Microsoft is investing $15.2 billion in the UAE to expand AI and cloud infrastructure. This includes the first U.S.-approved export of advanced Nvidia chips to the UAE. The investment positions the UAE as a key location for U.S. AI diplomacy and strengthens American influence in the region.
The deal involves a deepened partnership with G42, an AI firm based in Abu Dhabi. The funds will support the construction of data centres equipped with over 80,000 Nvidia GPUs, establishing the UAE as an AI innovation hub. Microsoft's Brad Smith highlights the deal's role in building trust and promoting ethical AI practices.
This move comes amid U.S. scrutiny of technology exports to the Middle East. Approvals for chip exports required G42 to divest from Chinese partnerships and adhere to U.S. guidelines. This framework may serve as a model for future agreements, balancing export controls with global AI alliances.
