G42 Seeks Chip Supplier Diversification for UAE-US AI Park

G42, a technology group supported by Abu Dhabi, is reportedly seeking to diversify its chip suppliers for the UAE-US AI park, aiming to reduce its dependence on NVIDIA. This strategic move is designed to ensure a more stable and secure supply chain for the park's AI infrastructure. By exploring alternative suppliers, G42 aims to mitigate risks associated with relying heavily on a single vendor, especially in the context of geopolitical tensions and potential supply chain disruptions. This approach aligns with broader industry trends towards supply chain diversification, as companies strive to enhance their resilience and flexibility in the face of global uncertainties.

G42 is reportedly in discussions with several major U.S. technology companies, including Amazon, Microsoft, Meta, and Elon Musk's xAI, inviting them to become tenants in the data center. Among these negotiations, the progress with Google is said to be the most advanced. This initiative not only seeks to diversify the chip supply but also aims to attract a broader range of technology partners to the AI park, fostering a more collaborative and innovative ecosystem.

In addition to diversifying its chip suppliers, G42 is exploring partnerships with other leading chip manufacturers such as AMD, Cerebras Systems, and Qualcomm. These collaborations are intended to provide part of the computational capabilities required for the AI park. This move is part of a broader strategy to ensure that the park has access to a variety of advanced technologies, enhancing its overall capabilities and competitiveness.

The AI park was announced during a visit by former U.S. President Donald Trump to the UAE in May, when he declared over $20 billion in deals with the Gulf nation. This initiative underscores the growing importance of AI in the region and the strategic efforts being made to support its development. By diversifying its chip suppliers and attracting leading technology companies, G42 is positioning the UAE-US AI park as a hub for innovation and technological advancement, contributing to the region's economic and technological growth.