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Abu Dhabi, September 2, 2025 – UAE tech firm G42, a start-up backed by the government, is in ongoing talks with major U.S. technology companies as it seeks to secure tenants for its ambitious UAE-US AI Campus, while exploring alternatives to Nvidia’s chips amid concerns over supply and U.S. export restrictions.
According to a report by Semafor, negotiations are underway with Amazon Web Services, Google, Meta, Microsoft, and Elon Musk’s xAI, with Google reportedly the furthest along. However, no agreements have yet been signed.
Expanding Beyond Nvidia
The $multi-billion infrastructure project, announced in May 2025, is designed to support up to 5 gigawatts of capacity and serve nearly 2.9 billion people living within 2,000 miles of the UAE.
As part of its buildout, G42 is assessing ways to diversify its AI accelerator supply, holding discussions with U.S. chipmakers AMD, Qualcomm, and Cerebras Systems—the latter in which G42 holds a stake. While the first phase of the project is expected to rely heavily on Nvidia’s Grace Blackwell GB300 systems, supply chain and national security concerns have complicated procurement, raising the stakes for alternative chip partnerships.
In June, Reuters reported that U.S. policymakers had not finalized export approvals for large-scale deliveries of Nvidia’s latest GB300 chips to the UAE, despite the project being launched with high-profile fanfare during a U.S. state visit.
Stargate Partnership Anchors First Phase
One anchor tenant has already been confirmed: Stargate AI, the global infrastructure venture formed by OpenAI, SoftBank, Oracle, and the UAE’s MGX. Stargate has committed to using 1 GW of capacity at the campus, marking its first site outside the U.S. That initial phase is set to come online in 2026, built around Nvidia’s most advanced platforms.
The challenge for G42 is to ensure the campus remains attractive and resilient in the face of chip supply uncertainty—a concern that has grown as Washington sharpens its national security oversight of advanced AI hardware sales in the Middle East.
“Digital Embassies” Pitch
Beyond hyperscale tenants, G42 is also pushing a novel concept dubbed “digital embassies.” The framework envisions governments hosting their national data within the UAE’s AI Campus as a safeguard against natural disasters, cyberattacks, and high domestic energy costs.
By positioning itself as a neutral and cost-effective data hub, the UAE hopes to appeal to smaller nations seeking secure and affordable digital infrastructure.
Regional Rivalry
The UAE project faces stiff competition from a parallel initiative in neighboring Saudi Arabia, where state-backed firm Humain is building its own large-scale data centers. Humain’s CEO has said its existing and under-construction capacity—targeted to reach 1.9 GW by 2030 and 6 GW by 2034—is already sold out, underscoring the region’s surging demand for AI computing.
Meanwhile, Saudi Arabia has deepened ties with China’s tech ecosystem. Lenovo has struck a deal to manufacture servers in the kingdom, and Huawei is pitching its AI chips to regional customers. In July, Bloomberg reported that Riyadh appeared open to exploring Chinese hardware purchases despite U.S. efforts to limit Beijing’s influence in the Middle East.
Adding to this, Shenzhen-based robotics firm UBTech recently announced a $1 billion funding round to build a major humanoid robot factory in the region, signaling China’s intent to expand its AI footprint in Gulf economies.
Geopolitics Meets Infrastructure
The AI Campus highlights the UAE’s ambition to become a global hub for artificial intelligence while balancing its partnerships with Washington and Beijing. For the U.S., the project represents both an opportunity to anchor American tech giants in a strategically vital region and a test of how to manage sensitive AI technology exports.
For G42, the path forward hinges on signing tenants, diversifying beyond Nvidia’s hardware, and ensuring that the UAE’s flagship AI hub can deliver on its promise of scale, security, and speed.
