The U.S.’ AI love affair with the UAE boils down to dominance
UAE, US Forge AI Alliance for Global Dominance
Updated May 28, 2025
The United Arab Emirates and the United States are deepening their alliance to achieve supremacy in artificial intelligence. This partnership leverages U.S. semiconductor technology and the UAE’s abundant energy resources to power AI data centers.
Analysts see the collaboration as a strategic move, with the UAE gaining access to advanced computing and the U.S. expanding its AI infrastructure beyond its physical limits. The Middle East, fueled by cheap energy and capital, is becoming a key AI hub.
The UAE aims to diversify its economy and enhance its global influence through AI leadership. For the U.S., the goal is to ensure American companies lead the global AI race and spread U.S. technology worldwide.
deals announced during President Trump’s visit to the Middle East included the Stargate Project, a $500 billion AI-focused investment vehicle involving OpenAI, Oracle, Nvidia, and Cisco Systems. This project will provide the UAE with access to Nvidia’s advanced chips and American software.
“Compute, not crude, is going to be the central pillar of the U.S.-gulf relationship,” Mohammed Soliman, senior fellow at the Middle east Institute, said.
The UAE’s commitment to a U.S.-led AI future is evident in G42’s divestment from Chinese companies to maintain access to U.S.technology. Baghdad Gherras, a venture partner at antler, emphasized the importance of securing compute resources for AI leadership.
The UAE’s development of its own large language model, Falcon AI, is a critically important step toward dominating the AI market and enhancing its diplomatic leverage. Soliman suggests the Gulf could become a provider of compute services for emerging markets.
The U.S. aims to counter China’s technological advances by opening new markets in the middle East. David Meier, an economist at julius Baer, noted that this move strengthens U.S. compute supply chains and positions the country for continued AI leadership.
Daniel Newman,CEO of Futurum Group,said that “The race is on to diffuse U.S.-based AI into every part of the world.” OpenAI’s Chris Lehane has framed the company’s efforts as a countermeasure to China’s AI influence, promoting a “democratic AI” system.
What’s next
The U.S. and UAE are expected to continue strengthening their AI alliance, with further investments and collaborations anticipated in the coming years. The focus will likely remain on expanding AI infrastructure, developing advanced AI models, and promoting the adoption of U.S. technology in the Middle East and beyond.