In a move that underscores the UAE’s growing status as a global hub for artificial intelligence, Microsoft announced plans to increase its investments in the country to $15 billion by 2029, following U.S. government approval to export advanced NVIDIA chips to the Emirates.
According to a Reuters report, Microsoft is preparing to significantly expand its investments in the UAE as part of the nation’s broader strategy to position itself as a world leader in AI technologies, leveraging cutting-edge NVIDIA chips designed for high-performance data centers.
Brad Smith, Microsoft’s Vice Chair and President, stated that a substantial portion of this investment will go toward building new data centers across the UAE. He described the initiative as a pivotal step to meet the surging demand for AI capabilities across the region.
The announcement follows Microsoft’s minority stake acquisition in the Emirati AI firm G42, which granted Smith a seat on its board. However, the deal sparked concerns among U.S. policymakers due to G42’s previous ties with the Chinese government, raising fears that Beijing could potentially gain access to NVIDIA chips through the company.
In response, G42 reassured U.S. officials of its compliance with all AI and semiconductor export regulations—a commitment reinforced by Smith, who affirmed the company’s adherence to American laws governing the technology sector.
The report also noted that G42 received licenses to import high-end NVIDIA chips for AI data centers—21,000 units during the Biden administration, in addition to 60,000 more chips approved in September.
