Microsoft has a made a huge $15.2 billion bet on the United Arab Emirates (UAE). This commitment further cements the Gulf state’s ambition to become a foundational leader in artificial intelligence (AI). Microsoft has committed a bit more than $7.3 billion, covering from 2023 through the end of 2025. On top of that, they committed an additional $7.9 billion from 2026 onward. This multi-pronged investment strategy reinforces the company’s long-term commitment to AI development and cloud infrastructure in the area.
A notable component of Microsoft’s investment includes a $1.5 billion equity stake in G42, the UAE‘s sovereign AI company, which aims to bolster local expertise and capabilities in artificial intelligence. Microsoft plans to invest more than $4.6 billion in capital expenditures for data centers in the UAE. This critical investment will help to shore up the country’s digital infrastructure while supporting its fast-growing tech ecosystem.
In a move that reflects both strategic partnership and technological advancement, Microsoft has received approval to export Nvidia chips to the UAE. This license will allow the first-ever shipments of advanced Nvidia GPUs. These GPUs are foundational for AI workloads and will further bolster Microsoft’s efforts to bring this technology to the region. These welcome developments are the result of a remarkably close and productive partnership between the United States and the UAE. Perhaps most significantly, the UAE—under President Donald Trump’s administration—struck a landmark agreement with UAE President Sheikh Mohamed bin Zayed al-Nahyan to establish an AI data center campus in Abu Dhabi.
Microsoft’s investment approach is a little broader than infrastructure. The company intends to direct resources towards AI research and model development, with a particular focus on Abu Dhabi. The company aims to train one million residents in AI by 2027, fostering local talent and ensuring the sustainable growth of the technology sector. Abu Dhabi, too, is positioning itself as a regional capital for AI research. To this end, Microsoft is committed to creating a collaborative atmosphere that encourages innovation.
The firm recently completed a key alliance with Australia’s IREN. They signed a $9.7 billion contract to expand AI cloud capacity. This partnership serves as an example of Microsoft’s larger plan to bring their generative AI services into multiple different industries and markets. Simultaneously, it bolsters Microsoft’s growing interests in the UAE.
Rebecca Bellan, senior reporter at TechCrunch, takes a closer look at the massive investment from Microsoft. This strategic relocation strengthens the company’s foothold in the region and highlights the emerging trends in AI diplomacy and technology partnership between the United States and its allies.