From Silicon Valley To Sand Dunes, OpenAI Now Wants To Build An 'AI Oasis' In The UAE

Word on the StreetWednesday, May 14, 2025 10:12 am ET
1min read

Trump's most recent Middle East trip has made companies consider expanding their operations in the region, including OpenAI, which is reportedly considering establishing a new data center in the United Arab Emirates (UAE).

While the agreement has not yet been finalized and may still undergo changes, sources suggest that U.S. President Donald Trump is expected to announce the deal during his visit to the UAE on Thursday.

Trump began a four-day state visit on Tuesday, covering Saudi Arabia, Qatar, and the UAE. U.S. officials previously stated that the trip would focus on discussions about investment and economic cooperation, with multiple agreements expected to be announced.

Insiders revealed that these may include OpenAI's data center plans in the UAE and measures to allow Gulf states greater access to advanced semiconductors.

Notably, OpenAI CEO Sam Altman is currently accompanying the U.S. delegation in the Gulf region as part of a broader tech leaders' visit and his efforts in so-called "business diplomacy."

OpenAI Invests Overseas

OpenAI has long maintained ties with the UAE, dating back to its 2023 partnership with Abu Dhabi-based AI firm G42.

In 2024, G42 secured a $1.5 billion investment from Microsoft, which is the biggest investor in OpenAI. That same year, the UAE sovereign investment vehicle MGX participated in OpenAI's $6.6 billion funding round, which concluded in October. In 2025, MGX also joined Trump's announced $100 billion "Stargate" joint venture project.

The latest reports on OpenAI's potential UAE collaboration highlight the company's strategic shift toward global expansion.

OpenAI stated last week that it intends to work with governments to develop more AI infrastructure outside the U.S. and help countries tailor its products to local languages and needs.

Trump May Ease Chip Restrictions

However, it remains unclear how large OpenAI's UAE data center will be. Sources say its capacity largely depends on whether OpenAI can successfully import cutting-edge Nvidia chips, essential for AI development and training, into the UAE.

Since 2023, the U.S., under the Biden administration, has restricted sales of advanced chips to countries like the UAE.

But now, given the Gulf nations' massive investment commitments in U.S. tech and infrastructure, the Trump administration is leaning toward rolling back Biden-era AI chip restrictions and introducing new measures. Officials are negotiating a deal that could ease chip access for Gulf states.

Earlier this week, reports indicated that the Trump administration is considering a proposal allowing the UAE to import over 1 million advanced Nvidia chips, 500,000 annually, from now until 2027. Of these, 20% would go to Abu Dhabi's G42, while the rest would be allocated to U.S. firms building data centers in the UAE.

However, the deal is still being negotiated and may be subject to further changes.