Microsoft announces $15.2 billion investment in UAE AI and cloud infrastructure, expanding access to advanced Nvidia chips
ABU DHABI: Microsoft has announced a $15.2 billion investment in artificial intelligence and cloud computing infrastructure within the United Arab Emirates.
The company’s vice chairman and president Brad Smith confirmed Microsoft had already invested $7.3 billion in the Gulf country since 2023.
An additional $7.9 billion will be spent by the end of 2029 to further develop these technological capabilities.
This significant investment announcement caused shares of US chip-maker Nvidia to rise by 2.6%.
Market optimism grew from expectations that Nvidia’s most advanced chips could gain access to expanded markets through this deal.
Smith clarified in a blog post published during his Abu Dhabi visit that this capital represents money being spent within the UAE, not funds raised locally.
He stated the investments received encouragement from both the US and UAE governments.
The initiative involves a strategic partnership with G42, the UAE’s sovereign artificial intelligence company.
Approximately two-thirds of the total investment will fund the construction of AI and cloud data centres across the Emirates.
The remaining one-third is allocated for planned local operating expenses and related development costs.
Smith highlighted that Microsoft became the first company to receive export licences from the Trump administration to supply GPU chips to the UAE.
Washington has historically restricted international access to America’s most advanced processors capable of running sophisticated AI models.
The UAE maintains its status as a close US ally and popular investment destination despite these export controls.
US authorities remain vigilant about preventing advanced chips from bypassing export restrictions and reaching geopolitical rivals like China.
Microsoft emphasised the substantial work undertaken to meet strict cybersecurity and national security conditions attached to these export licences.
Updated licences granted in September permit the company to ship the equivalent of 60,400 additional A100 chips.
This shipment includes Nvidia’s even more advanced GB300 GPUs now being deployed in the UAE.
These powerful GPUs will provide access to advanced AI models from OpenAI, Anthropic, various open-source providers, and Microsoft’s own AI developments. – AFP
