UAE-backed technology firm G42 is exploring other AI chip suppliers beyond Nvidia to expand its semiconductor supply options. The company already initiated negotiations with AMD, Cerebras Systems, and Qualcomm to provide the AI chips that will power its AI campus.
G42 announced plans to build an AI data center campus with a 5 gigawatt capacity in a collaboration between the UAE and the U.S. The announcement came during President Donald Trump’s visit to the country, which attracted more than $200 billion in signed deals. Trump’s visit secured multiple chip export deals with the UAE, which sparked concerns among senior U.S. officials. They cited national security reasons and economic control surrounding the deals.
UAE pushes a ‘digital embassy’ model for governments
According to a recent Cryptopolitan report, in July, Huawei was pushing to sell its Ascend 910B AI chips and CloudMatrix 384 systems to G42. However, the discussions remain in the early stages, with no binding agreements formed. The report revealed that Huawei’s chip supply capacity remains limited compared to Nvidia, which already has substantial supply deals in the region.
In an exclusive report by Semafor, AWS, Microsoft, Meta, and xAI are among the companies involved in talks with G42 to secure the projected 5 gigawatt data center capacity in the UAE. The UAE has boasted the project as the most significant AI infrastructure outside of the U.S. One gigawatt of the project has already been committed to Trump’s Stargate AI initiative.
The Stargate AI initiative aims to advance AI infrastructure worldwide with partners including SoftBank, Oracle, OpenAI, and MGX. President Trump announced early this year that the plan for private sector investment is valued at an estimated $500 billion.
G42’s data center campus will utilize Nvidia’s Grace Blackwell GB300 systems, representing about 20% of the campus’s total scope. The facility is expected to launch in 2026. The company is also developing a pitch to governments via a model described as ‘digital embassies’. The model offers secure hosting of national data in the UAE to safeguard against natural disasters, cybercrime, and rising land and energy costs.
G42 faces competition from rival Saudi Arabian-backed HUMAIN
The UAE-backed project faces competition from Saudi Arabia’s HUMAIN, which is building a 1.9 gigawatt capacity AI data center expected to be achieved by 2030 and expanded to 6 gigawatt by 2034. HUMAIN, backed by the Public Investment Fund, agreed with Nvidia recently to power a 500 megawatt AI data center in the UK. The deal was announced during the Saudi-U.S. Investment Forum during Trump’s visit to the region.
Jensen Huang, Nvidia’s CEO, confirmed that they will supply HUMAIN with semiconductor chips to advance the company’s goal of building a 1.9 gigawatt capacity by 2030. Despite concerns from U.S. officials, Trump framed the agreements as part of his strategy to attract foreign investment into the U.S. tech sector.
Saudi Arabia has also maintained strong ties with Chinese technology firms as the UAE leans towards the West. Recently, the country secured a deal with Lenovo to manufacture its servers in the Kingdom.
Globally, competition may arise from India, which has received several investments in AI data center infrastructure. Cryptopolitan reported that OpenAI is exploring building a one-gigawatt AI data center in the country, which is also part of the Stargate AI initiative. According to projections in the report, India plans to house at least 4,500 megawatts of data center capacity by 2030, with a total investment of around $25 billion.
The aggressive AI infrastructure investments follow the recent global AI technology sector boom, with Nvidia recording a 56% year-over-year increase in Q2. The company has projected a revenue of $54 billion in Q3, but analysts warn that its valuation may echo the dot.com bubble, with growth harder to sustain.
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Source: https://www.cryptopolitan.com/uaes-g42-seeks-to-diversify-chip/
