UAE Bets Big on AI with Silicon Valley-Backed Mega Campus

Desert Dreams Get a Silicon Makeover

The United Arab Emirates is shaking up the global AI race by planning to build the largest artificial intelligence chip campus outside of the United States. In a bold pivot toward American tech partnerships, Abu Dhabi has partnered with Silicon Valley billionaire Marc Andreessen—co-founder of Andreessen Horowitz—to back this monumental project. Set to be headquartered in Masdar City, the new facility will be led by G42, the UAE’s AI champion with significant ties to the Emirati government. The initiative is part of a broader $1.5 billion AI chip venture aimed at reducing the region’s dependencies on both Chinese and Western providers, by establishing itself as a formidable player in AI hardware infrastructure.

Geopolitics, Chips, and Strategic Alliances

This investment comes as the U.S. delicately navigates its tech relationship with the UAE—particularly G42—after previous national security concerns over its collaboration with Chinese firms like Huawei. By pulling back from those ties and involving American strategic and financial partners, G42 is now positioning its AI ventures squarely within the realm of U.S. influence. The move reflects Washington’s broader efforts to limit China’s reach in the global AI economy and secure crucial technology nodes. If successful, the UAE campus could provide a trusted supply of AI semiconductors to global markets while cementing U.S.-friendly alliances in the Gulf.