The UAE and US have finalized a landmark agreement to construct the world’s largest AI campus outside the United States. Part of a $200 billion deal and backed by a $1.4 trillion long-term investment framework, the partnership strengthens economic and technological ties and positions the Gulf as a pivotal force in global AI development.
UAE and US Finalize $200B AI Deal – Key Points
Historic AI Campus Agreement:
During President Donald Trump’s state visit to Abu Dhabi, the UAE and US announced a plan to build a 10-square-mile AI campus with 5GW of capacity, beginning with a 1GW compute cluster. The project will be developed by Emirati tech firm G42 and aligns with the UAE’s ambition to lead in AI by 2031.
$200 Billion in Economic Deals, Backed by $1.4 Trillion Framework:
The UAE and US signed over $200 billion in new commercial agreements, forming part of a broader Gulf pipeline now totaling more than $2 trillion. Highlights include:
- Etihad Airways: $14.5B for 28 Boeing aircraft powered by GE engines—supporting 60,000 American jobs.
- Emirates Global Aluminum: $4B smelter in Oklahoma—first in 45 years—creating 1,000 jobs.
- Energy Sector: $60B in oil and gas projects involving ADNOC, ExxonMobil, Occidental, and EOG.
- Critical Minerals: Gallium production project launched by RTX and Tawazun to secure semiconductor supply chains.
- Tech & Connectivity: Qualcomm to open an AI engineering hub in Abu Dhabi and expand with e&.
- Cloud & Cybersecurity: AWS, e&, and the UAE Cybersecurity Council launched a Sovereign Cloud Launchpad projected to add $181B to the UAE’s digital economy by 2033. (White House)
Access to Advanced AI Chips:
A preliminary agreement will allow the UAE and US to collaborate on the transfer of 500,000 Nvidia Blackwell GB300 chips per year starting in 2025. This reverses Biden-era restrictions and supports chip integration into the project’s advanced compute clusters.
US Companies to Operate Data Centers:
All UAE-based data centers will be operated by American companies. Additionally, the UAE and US agreed that the UAE will build or finance equivalent data centers on American soil.
US-UAE AI Acceleration Partnership:
A bilateral initiative was launched to jointly scale compute capacity, cloud infrastructure, and AI development, ensuring the UAE and US operate with aligned tech standards and regulatory oversight.
Stargate Project Backed by Industry Giants:
Nvidia, Cisco, Oracle, and OpenAI are supporting the project. Top tech leaders including Jensen Huang, Sam Altman, and Larry Ellison were present in Abu Dhabi. The deal mirrors a parallel AI infrastructure expansion currently underway in the US.
UAE’s Strategic Positioning:
The UAE is recalibrating its relationships, sustaining ties with China while increasingly aligning AI, cybersecurity, and infrastructure with Western standards. G42 has already removed Chinese components from its systems.
Security and Regulatory Commitments:
The UAE pledged to align with US national security regulations, preventing diversion of sensitive technologies. These measures were key to lifting prior restrictions and finalizing the AI cooperation.
Regional Diplomacy and Economic Momentum:
Trump’s broader Gulf visit generated massive regional commitments:
$10B investment from Qatar in a US military base
$70B+ Qatar Airways-Boeing deal
$600B Saudi investment pledges
$142B US arms sales to Saudi Arabia
Announcements on Iran nuclear negotiations and sanctions removal from Syria
Together, these deals push total Middle Eastern investment agreements under Trump to over $2 trillion.
Why This Matters:
The UAE and US partnership is reshaping global AI power dynamics. The deal boosts regional infrastructure, strengthens chip supply chains, and reinforces American tech leadership. It also marks a clear pivot toward Gulf-centered AI alliances that operate under US-aligned security protocols, setting a new standard for international AI cooperation.
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