G42 Pursuing Chip Supply Diversification for AI Campus
Abu Dhabi-backed technology firm G42 is actively seeking to diversify its semiconductor suppliers for a massive UAE-US artificial intelligence campus, looking beyond its established relationship with Nvidia[1][2]. According to a recent report from
Semafor, the company is in discussions with major US chipmakers including AMD, Cerebras Systems, and Qualcomm to supply computing power to the facility[1][2].
Major US Tech Firms in Negotiations as Potential Tenants
G42 is negotiating with leading American technology companies to become anchor tenants at the new AI data center campus:
- Amazon Web Services (AWS)
- Microsoft
- Meta
- Google: currently the furthest along in negotiations
- Elon Musk’s xAI
These negotiations reflect G42's ambition to create the world's largest artificial intelligence infrastructure project outside the United States, with the campus designed to deliver up to five gigawatts of computing power[2][3].
Strategic Rationale and Digital Embassies Concept
The new facility, announced in May as part of a broader US-UAE partnership[3], is part of G42’s strategy to bolster the UAE's role in the global AI ecosystem. One innovative concept underpinning the business case is the idea of “digital embassies”—secure frameworks for foreign governments to store critical data in the UAE. This initiative aims to provide resilience against natural disasters, cyber threats, and offer a lower-cost data storage alternative for countries where energy and land are more expensive[2].
AI Industry Trends and Competitive Landscape
The AI chip market is heating up globally:
- G42 is considering suppliers such as AMD, Cerebras Systems (a company in which it holds a stake), and Qualcomm[2].
- Huawei is also reportedly looking to sell AI chips to Middle East customers, while Saudi Arabia has expressed interest in expanding its AI capabilities[2].
Context: Broader AI Expansion and Market Dynamics
The AI infrastructure push in the Gulf region comes at a moment of global market volatility. The outlook for AI remains strong even as the launch of new large language models such as
ChatGPT-5 receives mixed industry feedback and tech stock valuations fluctuate[2]. Nonetheless, the UAE’s government and private sector continue to drive AI adoption across all spheres of the economy, from education to boardrooms[2].
Project Outlook and Future Steps
The AI campus is expected to be one of the largest in the world upon completion, forging new pathways for international data cooperation and technological innovation[3]. G42 and its partners are set to play a central role in advancing the UAE’s ambitions as a global leader in artificial intelligence development and infrastructure[1][2][3].
