In the Middle East’s oil-rich deserts, the United Arab Emirates is intensively working to become a global leader in artificial intelligence, aligning closely with the United States’ strategic ambitions. While the US boasts the world’s most advanced semiconductor chips, the UAE benefits from abundant, inexpensive energy—ideal for powering large AI data centers. For decades, the two nations have maintained alliances, now strengthening in AI, with hundreds of billions of dollars invested via tech giants like Nvidia, Microsoft, OpenAI, and regional firms such as G42 and Mubadala.
Their collaboration holds significant global implications, not only for the AI race but also for national security, geopolitical influence, and the contest with China. During President Donald Trump’s recent Middle East tour, collaborations were announced involving over $200 billion in deals across Riyadh, Doha, and Abu Dhabi, with a focus on tech and AI development. Notably, OpenAI, Nvidia, Oracle, and Cisco signed agreements to build the Stargate UAE AI campus, expected to launch in 2026 with an initial 200-megawatt AI cluster, further integrating American technology and chips into the region’s infrastructure.
This partnerships’ strategic aim is to position the UAE as an AI hub, securing its geopolitical leverage, diversifying beyond oil, and fostering a techno-economic ecosystem. For the US, the goal is to guarantee American dominance in the AI sector, counter China, and expand American tech influence globally. Trump’s administration plans to rescind export restrictions on AI chips, a move that could risk technology falling into rivals’ hands but also opens markets for US firms in the Middle East.
Beyond energy, the alliances pivot towards “compute,” the hardware and processing power essential for AI training and deployment, signaling a new phase in US-Gulf relations. The UAE’s development of its own large language model, Falcon AI, symbolizes its push to lead in AI, aiming to provide AI services for diverse languages and emerging markets worldwide. Such ambitions could make the Gulf a regional AI services provider, expanding its influence from energy to AI tech governance.
The US’s strategic push aims to cement American tech dominance while countering China’s rapid advancements. The Middle East’s evolving role in AI underscores a significant shift—transforming from energy reliance into a key hub for AI innovation, with immense geopolitical repercussions.
