UAE Pushes for More US AI Technology in Presidential Meeting

As the global race for AI supremacy intensifies, the UAE is actively diversifying its economy with a strong focus on technology and innovation.

The UAE, traditionally reliant on oil exports, sees AI as a key component of its economic diversification strategy; and so the US, home to leading tech giants and AI research institutions, is seen as a crucial partner in this transformation.

The US is home to tech giants like Google, Microsoft and OpenAI and has been at the forefront of AI development. However, it faces increasing competition from The People's Republic of China, which has made significant strides in AI research and application.

By aligning with the US, the UAE aims to accelerate its technological advancement and establish itself as a global AI hub.

To begin this technological relationship between the US and the UAE, President Sheikh Mohamed bin Zayed al-Nahyan and US President Joe Biden in Washington have met to discuss strategy ideas moving forward. A collaboration between these nations could drastically impact the global use of AI, influencing everything from economic policies to geopolitical strategies.

We take a look at what they discussed.

UAE's strategic push for AI collaboration

Sheikh Mohamed's visit to Washington, his first official US trip in seven years, highlights the UAE's determination to secure American support for its AI aspirations.

The meeting resulted in instructions for officials to develop a memorandum of understanding on AI cooperation, a crucial step towards formalising the partnership.

Anwar Gargash, Sheikh Mohamed's diplomatic adviser, emphasised the transformative potential of AI, stating: "AI and new changes in cloud computing are going to change the way the world looks. We cannot let this sort of wave of technological breakthroughs pass by us."

The discussions covered various areas for collaboration, including bilateral investment and "efficient licensing".

In addition to AI cooperation, the meeting also addressed broader strategic issues.

President Biden announced that the UAE would now have "major defence partner" status, similar to India, aimed at fostering greater security ties through measures such as joint military training and exercises.

Navigating export control challenges

Despite the enthusiasm for collaboration, the UAE's AI ambitions face significant hurdles due to US export controls.

In 2023, the US added Gulf states to a list of countries restricted from freely importing advanced AI chips, citing concerns about potential technology leaks to China.

This restriction has impacted UAE companies' AI plans, as they now need to apply for licences to import cutting-edge US-made AI chips, causing delays in some projects.

Brad Smith, President of Microsoft, which invested US$1.5bn in the UAE's prominent AI group G42 in April, told the Financial Times that clarity over the export controls was "emerging", but it had "taken several months to work through".

Brad added that export applications by Microsoft and other technology companies were not fully complete but were "getting very close".

Expanding partnerships and investments

Despite these challenges, the UAE continues to forge ahead with its AI strategy, deepening relationships with US tech companies.

G42 recently announced a collaboration with Nvidia, a US company that produces chips critical for AI, on a weather forecasting initiative.

The UAE is also leveraging its financial resources to invest in AI infrastructure.

For example, MGX, a new Abu Dhabi investment vehicle dedicated to AI, has joined forces with asset manager BlackRock, Global Infrastructure Partners, and Microsoft to launch a US$30bn fund for investing in data centres and the energy to power them.

Sheikh Tahnoon bin Zayed al-Nahyan, the UAE's national security adviser and chair of G42, has been at the forefront of efforts to secure US backing for the UAE's AI ambitions.

His technological acumen is seen as an asset in negotiations with US officials and executives.

The collaboration between these nations represents a significant step in shaping the future of AI, with potential impacts on various sectors including finance, healthcare and national security.

Anwar concludes, emphasising the economic imperative driving the UAE's AI push: "If we believe that hydrocarbon is on the way out, slowly but surely, then we have to replace the revenue stream through something else."

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