Microsoft's $15.2B UAE Investment Becomes Test Case for US AI Export Diplomacy

Microsoft's $15.2B UAE investment turns Gulf State into test case for US AI diplomacy | TechCrunch

Microsoft will invest $15.2 billion in the United Arab Emirates over the next four years, the company announced Monday at the first annual Abu Dhabi Global AI Summit. The investment will include the first-ever shipments of the most advanced Nvidia GPUs to the UAE. As part of the deal, the U.S. has granted Microsoft a license to export Nvidia chips to the UAE, a move that positions the country as both a proving ground for U.S. export-control diplomacy and a regional anchor of American AI influence. The deal allows Microsoft to expand its foothold into the Middle East, a key region in the global fight for AI dominance. In May, President Donald Trump struck a deal with UAE President Sheikh Mohamed bin Zayed al-Nahyan to build an AI data center campus in Abu Dhabi. The project was delayed due to U.S. export controls, which restricted the sale of powerful Nvidia chips needed to run advanced AI systems. Microsoft became the first company to receive a license from the U.S. Commerce Department to ship the chips to the UAE in September. The move comes as critics say the deal undermines the logic of the U.S.'s export restrictions to China by introducing possible back-channels through a Chinese ally. In a statement, Microsoft said it performed substantial work to meet the strong cybersecurity and national security conditions required by the licenses, which has enabled the firm to accumulate the equivalent of 21,500 Nvidia A100 GPUs in the UAE, based on a combination of A100, H100, and H200 chips. Microsoft said it is using the chips to provide access to AI models from OpenAI, Anthropic, open-source providers, and itself. The $15.2 billion figure includes money Microsoft began spending in the UAE starting in 2023 as part of a new AI initiative in the country. Between 2023 and the end of 2025, Microsoft will have spent just over $7.3 billion in the UAE, including a $1.5 billion equity investment in G42, the UAE's sovereign AI company, and more than $4.6 billion in capital towards data centers. As part of the new deal, Microsoft pledges to spend $7.9 billion more in the UAE from the start of 2026 to the end of 2029, including $5.5 billion in capital expenses for ongoing and planned expansion of AI and cloud infrastructure. Microsoft hinted at new steps it will share publicly in Abu Dhabi this week. Microsoft's work in the UAE goes beyond building data centers. The company says it is pairing massive AI infrastructure with deep investment in local talent, training, and governance. The firm is pledging to train a million residents by 2027 and use Abu Dhabi as a regional hub for AI research and model development. The investment comes the same day that Microsoft signed a $9.7 billion deal with Australia's IREN for AI cloud capacity.

Microsoft to invest over $15 billion in UAE, secures US export licenses for AI chips

Microsoft plans to invest over $15 billion in the United Arab Emirates in the seven years to the end of 2029 and has secured export licenses from the Trump administration to ship advanced chips to the Gulf country. Microsoft plans to invest over $15 billion in the United Arab Emirates in the seven years to the end of 2029 and has secured export licenses from the Trump administration to ship advanced chips to the Gulf country, it said Monday. "The biggest share of it (the investment), by far, both looking back and looking forward, is the expansion of AI data centers across the UAE. And from our perspective, it's an investment that is critical to meet the demand here for the use of AI," Microsoft Vice Chair and President Brad Smith told Reuters in an interview on Monday. Smith said that it had secured export licenses for that work from the US government last year and had secured new licenses for this year. Smith was speaking on the sidelines of the ADIPEC energy conference in Abu Dhabi. The UAE has been spending billions of dollars to become a global AI hub, looking to leverage its strong relations with Washington to secure access to U.S. technology, such as some of the world's most advanced chips.

Microsoft to spend $15.2B in UAE by 2029; unveils AI GPU export license (MSFT:NASDAQ)

Microsoft (MSFT) said on Monday that it will invest $15.2B in the United Arab Emirates from the years 2023 through 2029 as part of its efforts to grow its business in the region. The tech giant also said it received The investment aims to expand Microsoft's business in the UAE through equity stakes, AI and cloud infrastructure, and operating expenses, expected to strengthen its local presence and partnerships. The license enables Microsoft to deliver powerful AI chips for use in advanced AI models and applications, benefiting local organizations and enhancing AI-enabled services in the UAE. Collaboration with G42 supports both public and private sector adoption of AI and cloud technologies, fostering economic growth and increasing access to advanced applications in the UAE.

Microsoft to invest over $15 billion in UAE through 2029 By Investing.com

Investing.com -- Microsoft plans to invest more than $15 billion in the United Arab Emirates over the next seven years, with a focus on expanding artificial intelligence data centers across the country. The investment, which will run through the end of 2029, comes after Microsoft secured export licenses from the Trump administration to ship advanced chips to the Gulf nation, the company announced Monday. Microsoft Vice Chair and President Brad Smith told Reuters that the expansion of AI data centers represents the largest portion of the planned investment. "The biggest share of it (the investment), by far, both looking back and looking forward, is the expansion of AI data centers across the UAE. And from our perspective, it's an investment that is critical to meet the demand here for the use of AI," Smith said in an interview. Smith revealed that Microsoft had obtained export licenses from the U.S. government last year and secured new licenses for this year. He made these comments while attending the ADIPEC energy conference in Abu Dhabi.

Microsoft to invest over $15 billion in UAE, secures US export licenses for AI chips

ABU DHABI (Reuters) -Microsoft plans to invest over $15 billion in the United Arab Emirates in the seven years to the end of 2029 and has secured export licenses from the Trump administration to ship advanced chips to the Gulf country, it said Monday. "The biggest share of it (the investment), by far, both looking back and looking forward, is the expansion of AI data centers across the UAE. And from our perspective, it's an investment that is critical to meet the demand here for the use of AI," Microsoft Vice Chair and President Brad Smith told Reuters in an interview on Monday. Smith said that it had secured export licenses for that work from the U.S. government last year and had secured new licenses for this year. Smith was speaking on the sidelines of the ADIPEC energy conference in Abu Dhabi. The UAE has been spending billions of dollars to become a global AI hub, looking to leverage its strong relations with Washington to secure access to U.S. technology, such as some of the world's most advanced chips. (Reporting by Federico Maccioni, Editing by Louise Heavens)