The Minister of Artificial Intelligence and Digital Economy of the United Arab Emirates, Al Olama, expressed concerns about the scale of the chip industry in the Middle East and suggested that American decision-makers should pay attention to it.
In an interview with Bloomberg TV on Tuesday, Al Olama emphasized that any country with rivals would think the same, and the UAE is a strategic partner of the United States.
The US currently restricts chip exports to the Middle East, partly due to concerns that Chinese companies could indirectly access American chips through data centers in the region. Chinese companies largely cannot obtain cutting-edge US technology directly. President Joe Biden’s administration has been leading a broader effort to prevent advanced semiconductor and manufacturing equipment from falling into the hands of the Chinese government, fearing that such technology could bolster China’s military capabilities.
At the same time, the UAE is seeking support from the United States to become a producer of advanced semiconductors, a crucial component of the artificial intelligence industry supply chain. The oil-rich country is making significant investments to establish itself as a heavyweight in the field of artificial intelligence and sever ties with China in this sector to allay Washington’s concerns.
In April this year, Microsoft invested $1.5 billion in G42, a top artificial intelligence company based in Abu Dhabi. The transaction involved behind-the-scenes negotiations between the US and the company, with G42 agreeing to divest from China and shift towards American technology.
Al Olama stated that the deal with Microsoft and years of cooperation between the two allies are a continuation of a series of commitments made by the UAE.
G42’s partners include OpenAI, the creator of ChatGPT. As part of the US expansion in the region, the company is collaborating with this Gulf corporation. Microsoft is the largest investor in OpenAI.
Sheikh Tahnoon bin Zayed Al Nahyan, the UAE’s national security advisor, serves as the chairman of G42. Al Olama mentioned that Microsoft’s investment in G42 “solidifies the UAE’s and our nation’s championing of collaborations with OpenAI.”