G42 Seeks Majority Stake Sale to US Investors Amid Nvidia Chip Restrictions
Abu Dhabi's G42 is exploring selling a majority stake to US investors in order to maintain access to Nvidia chips, which are essential for its AI operations. The move comes as Washington has imposed export restrictions on advanced computing items to the UAE, with G42 and Core42 being named as approved end-users.
The restrictions have created uncertainty for G42's plans, including its involvement in the Stargate UAE project, a 1-gigawatt AI compute cluster that is expected to go live in 2026. The company also needs outside capital and American cover to address US export-control concerns.
G42 has already received investment from Microsoft, which invested $1.5 billion in the company in April 2024, but this deal came with conditions, including moving away from Chinese technology after years of scrutiny over its China ties.