US wants UAE to break partnership with China, join them instead in AI race

US President Joe Biden, Sheikh Mohammed bin Rashid Al Maktoum, the ruler of Dubai, and Chinese President Xi Jinping. Image Credit: Reuters

The Biden administration is actively exploring a partnership between US tech companies and the United Arab Emirates (UAE) in the ongoing artificial intelligence race to gain an advantage over China in a race to develop the technology.

In fact, it is actively trying to get the UAE to ditch China as it AI partner and join them instead.

This week, Microsoft made headlines by announcing a substantial $1.5 billion investment in G42, an AI company based in Abu Dhabi chaired by influential Emirati royal Sheikh Tahnoon Bin Zayed al-Nahyan. The deal marks a significant move in its strategic alliance with the UAE.

Sources familiar with the discussions reveal that the deal was facilitated by the US government through a series of meetings over the past year, involving prominent American tech firms like Microsoft, Google, and OpenAI, among others.

These efforts are part of Washington’s broader strategy to maintain leadership in AI technology, particularly in competition with China.

Key figures involved in the negotiations include Commerce Secretary Gina Raimondo and Sheikh Tahnoon, who oversees both G42 and Abu Dhabi’s largest sovereign wealth fund.

The partnership between US tech companies and Abu Dhabi reflects the intersection of commercial interests with national strategic and security considerations.

Abu Dhabi’s aspirations in AI are fueled by its ambitions to leverage its considerable wealth and reduce reliance on fossil fuels. Initiatives like the MGX fund dedicated to AI investments and substantial funding for research and development demonstrate the Emirate’s commitment to AI innovation.

Global leaders in AI, such as OpenAI’s Sam Altman and NVIDIA’s Jensen Huang, have been actively engaging with the UAE, with discussions focusing on collaborative ventures and investment opportunities.

Altman, for instance, has been involved in talks regarding a major chip venture that is aimed at developing the semiconductor infrastructure necessary for AI advancement.

However, US officials have expressed concerns about the UAE’s previous engagements with Chinese technology, particularly Huawei’s 5G hardware. Apprehensions are still high about China’s involvement and how it could compromise US interests and security.

In response, G42 has pledged that it will remove Chinese technology from its systems, and will collaborate with US partners.

The Microsoft-G42 deal sets a precedent for broader US-UAE collaborations in AI, with both of them committing to comply with mutually accepted regulations and international standards. The agreement reflects confidence and lays the groundwork for future government-to-government partnerships in AI development.

While the UAE continues to manage its relationship with China, its partnership with the US in AI signifies a strategic shift towards aligning with American interests in technology innovation and security.

(With inputs from agencies)