G42 Eyes US Reincorporation to Secure AI Chip Access

G42, Abu Dhabi's leading AI and cloud computing company, is considering a drastic move to reincorporate as a US entity. This would mean shifting majority ownership to American investors, which could alleviate the issues G42 faces in accessing advanced chips for its AI ambitions.

The main reason behind this decision is the US export controls that have made it difficult for non-allied nations to procure high-performance AI semiconductors at scale. G42 has been scrutinized over its historical ties to Chinese technology companies, including Huawei.

MICROSOFT's $1.5 billion investment in G42, finalized in April 2024, came with a condition that the company had to divest from its Chinese investments. To comply, G42 CEO Peng Xiao has implemented measures such as a tracking system called the Common Operating Picture, which gives US partners visibility into where chips end up after purchase.

The US Commerce Department's reclassification of the UAE in July 2026 allowed for easier acquisition of high-performance AI chips and dual-use technologies for a nine-month window. This created a degree of urgency for G42 to reincorporate as a US entity, which would offer more durable access rather than time-limited access.