G42 Pursues US Chip Access as UAE Oil Production Set to Soar
The UAE's national AI champion, G42, is reportedly exploring ways to secure long-term access to advanced US chips beyond next year's deadline. The company is said to be in talks with US companies about selling a majority stake, but this has been met with skepticism by some who believe the UAE would not sell its national champions.
G42 already has backing from Silver Lake and Microsoft, which invested $1.5 billion in April 2024, and is building the 5 GW UAE-US AI Campus in Abu Dhabi on Nvidia chips. The company cut its Chinese tech ties, including Huawei gear, in 2024 to win that investment and calm Washington's nerves.
S&P expects the UAE's oil production to increase, with output rising from 3.4 million barrels per day before the war to 5 million barrels per day by 2029. This is expected to boost the country's growth outlook, with real GDP growth averaging 6.2% in 2027-29.
In other news, Saudi Arabia's Dar Al Balad Business Solutions (DBS) has signed a non-binding MoU to explore buying up to 100% of two UAE-based AI firms - Clouding Computer Systems and Clouding Intelligence Computer Systems.