G42 CEO touts progress on semiconductor access as Abu Dhabi aligns closer with Washington in AI push
By Bloomberg
The United Arab Emirates is confident it will gain access to advanced semiconductors currently restricted by U.S. export controls, following a major investment pledge aimed at strengthening ties with Washington.
Peng Xiao, CEO of leading Emirati AI firm G42, said the country is making “very good and tangible progress” toward acquiring U.S. chips. His comments come after the White House revealed that the UAE has committed to invest $1.4 trillion in the U.S. over the next decade. That announcement followed a meeting between President Donald Trump and Sheikh Tahnoon bin Zayed Al Nahyan — Abu Dhabi’s national security adviser and chairman of a $1.5 trillion business empire that includes G42.
The UAE has been ramping up its investments in American technology and energy sectors in hopes of easing access to critical chips, which are key to its ambition of becoming a global AI leader. Currently, the UAE is classified under the second tier of the U.S. AI export framework, which limits the amount and power of processors it can import.
Sources familiar with Sheikh Tahnoon’s strategy said the meeting with Trump included plans to advocate for improved chip access and highlight the UAE’s plans to build tech infrastructure in the U.S. — including a $100 billion AI venture backed by MGX, which Sheikh Tahnoon chairs. The project was unveiled during Trump’s first week back in office.
“We want this to be a win-win partnership,” said Xiao, who also sits on the UAE’s AI and Advanced Technology Council. He hinted that G42 may be involved in the broader investment pledge but did not give details.
Executives from G42’s data and cloud arms also told Bloomberg this week that U.S. expansion is in the pipeline, alongside growth in Europe, Africa, and the Gulf. Last year, G42 began divesting from China and reducing reliance on Huawei to align with U.S. interests, paving the way for a new partnership with Microsoft.
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“The joint ventures between Emirati and American firms — whether in the UAE or U.S. — position us as a preferred partner,” said UAE AI Minister Omar Al Olama. “We’re not just another player anymore.”