The UAE is ramping up efforts to bolster its position in the global AI landscape through strategic collaborations with the US, including a recent $1.5 billion deal with Microsoft. With a focus on diversifying its economy and leveraging its significant capital advantage, the UAE aims to harness AI technology across sectors, facing competition from key players while navigating potential challenges related to governance and technology access.
The United Arab Emirates (UAE) is forging deeper ties with the United States in the realm of artificial intelligence (AI), aiming to leverage its oil wealth to become a significant player in the global AI landscape. Omar Sultan Al Olama, the UAE’s AI minister, highlighted a recent $1.5 billion deal with Microsoft, involving Abu Dhabi’s AI company G42, as a precursor to more extensive collaborative efforts. This agreement follows prolonged negotiations and includes G42’s commitment to move away from Chinese systems, reflecting the US’s goal to maintain its AI dominance.
Al Olama emphasized the need for coordination with US stakeholders in advancing cutting-edge technology. The UAE, backed by approximately $2 trillion in sovereign wealth funds, is intensifying its focus on AI to diversify its economy away from fossil fuels.
Abu Dhabi has established MGX, an investment entity chaired by Sheikh Tahnoon bin Zayed al-Nahyan, which has engaged in discussions with OpenAI regarding chip development. The UAE is building AI capabilities across various sectors such as healthcare and defense, noting significant cost savings and efficiency improvements in its national oil company through AI tools.
The UAE faces competition globally, particularly from the US, China, and tech start-ups in the UK, France, and Asia. However, its substantial capital advantage has drawn key industry figures like OpenAI’s Sam Altman and Nvidia’s Jensen Huang to the region. Despite stockpiling necessary AI chips, the UAE may face restrictions from US authorities on the shipment of certain AI chips.
Concerns persist about the UAE’s access to advanced AI technology, given its autocratic governance. Marietje Schaake of Stanford University highlighted the US’s strategic focus on countering China, potentially overlooking human rights issues elsewhere.
Abu Dhabi’s Advanced Technology Research Council (ATRC) recently launched Falcon 2, a new large language model, and AI71, a commercial AI company utilizing proprietary government data. Additionally, the Mohamed bin Zayed University of Artificial Intelligence, inaugurated in 2019, serves as a talent pipeline, addressing the workforce needs of the country’s AI ambitions.
While Abu Dhabi is focused on AI technology development, Dubai is enhancing its infrastructure to support AI applications, particularly in cloud computing and industry-specific sectors. Al Olama reiterated the UAE leadership’s commitment to AI as a transformative technology for future generations.
