Artificial intelligence’s biggest names are finding an increasingly influential ally in the United Arab Emirates, a nation eager to cement its place at the center of the global AI race. During a panel at Gitex Global 2025 in Dubai, Sam Altman, CEO of OpenAI, appeared virtually alongside Peng Xiao, CEO of Abu Dhabi–based tech giant G42, to discuss how the Gulf state’s wealth, ambition, and openness to innovation are helping fuel the next phase of AI development.
A Sheikh’s ChatGPT Obsession
Xiao captured the audience’s attention with a personal anecdote about Sheikh Tahnoon bin Zayed Al Nahyan, the UAE’s National Security Advisor and a key architect of the nation’s AI strategy. According to Xiao, the Sheikh — who chairs both G42 and the AI investment firm MGX — used ChatGPT more than 500 times to design his new Japanese-style seaside mansion.
“Sam has been there and he’ll tell you,” Xiao said with a smile. “This brand-new Japanese compound was built in less than one year.”
Altman confirmed his visit, describing Sheikh Tahnoon as “a personal friend” and praising the UAE as “a wonderful partner.”
Sheikh Tahnoon, who oversees a $1.5 trillion portfolio, has emerged as the driving force behind the UAE’s push into advanced technologies. His influence extends across G42, MGX, and various national AI initiatives — including a partnership with OpenAI that’s drawing the world’s attention.
The UAE’s Courtship of Silicon Valley
Oil-rich Gulf states have long invested in global technology firms, but the UAE’s recent moves represent a strategic evolution — one that goes beyond funding. For Altman and other AI leaders, the Emirates offer more than deep pockets: they provide cheap energy for data centers, a business-friendly regulatory environment, and a willingness to experiment with AI applications at scale.
Altman highlighted the UAE’s decision to make ChatGPT’s paid version available free of charge to every schoolchild, calling it “a bold example of a forward-thinking country embracing AI.”
He added, “I hope this serves as an example for the rest of the world to develop AI strategies and invest in data infrastructure.”
The collaboration includes Stargate, a massive five-gigawatt AI supercomputing project in the UAE that will serve as OpenAI’s first international hub. Though the project’s cost remains undisclosed, it underscores the scale of the partnership and the country’s ambition to become a global AI nerve center.
Not Just OpenAI
While the UAE has deepened ties with OpenAI, its investments span the entire AI ecosystem. MGX has also backed Elon Musk’s xAI, while rival AI developer Anthropic has found growing interest among Abu Dhabi investors, including Mubadala, the sovereign wealth fund managing more than $300 billion.
Anthropic CEO Dario Amodei, who had previously been critical of taking Middle Eastern investment, recently visited Abu Dhabi as his company pursued a $13 billion funding round. Though the firm declined to comment, his visit reflects the region’s growing appeal to top AI players seeking capital and infrastructure support.
Altman’s Deepening Ties
Altman’s relationship with the UAE appears to be the closest of any global AI executive. In September, he traveled to Abu Dhabi to meet data center operators and received the first honorary doctorate from the Mohamed bin Zayed University of Artificial Intelligence (MBZUAI) — another initiative backed by Sheikh Tahnoon.
OpenAI and G42 already have an official partnership, though details remain limited beyond their collaboration on Stargate. Still, both executives emphasized that their cooperation is built on mutual trust and long-term vision.
Politics and Partnerships
Their growing alignment comes amid geopolitical complications. The U.S. government approved a bilateral agreement earlier this year allowing American companies to export advanced AI chips to the UAE — but with restrictions. Local firms such as G42 were excluded due to concerns about their historical ties to China.
Neither Altman nor Xiao addressed the issue during their Dubai discussion. Instead, Xiao focused on the UAE’s internal adoption of AI. He noted that Sheikh Tahnoon now encourages his employees to use ChatGPT in both their professional and personal lives.
“Are you using ChatGPT at home? Are you teaching your children to use it?” Xiao recalled asking his staff. “It’s no longer about your job — it’s about a new lifestyle.”
Altman nodded in agreement, saying little else about the Sheikh’s AI-assisted mansion but sharing in the enthusiasm for the UAE’s national AI vision.
The Gulf’s AI Moment
The UAE’s rapid transformation into a global AI powerhouse is part of a broader Gulf trend — one where nations seek to diversify their oil economies by investing in emerging technologies. With vast capital reserves, abundant energy resources, and state-backed strategic planning, the country has positioned itself as a bridge between Silicon Valley innovation and Middle Eastern infrastructure.
For Altman, that alignment is invaluable. As global demand for AI computing power surges, the UAE’s combination of funding, energy, and ambition makes it an increasingly attractive partner for the world’s leading AI firms.
“After decades of promise,” said Xiao, “the AI-powered future is no longer theoretical. It’s being built — and the UAE intends to be at the center of it.”
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