ABU DHABI — Microsoft has announced a landmark $15.2 billion investment in the United Arab Emirates, marking one of its largest international commitments to AI infrastructure and positioning the Gulf nation as a test case for U.S. AI diplomacy.
The announcement was made at the Abu Dhabi Global AI Summit on November 3, 2025, and includes the deployment of tens of thousands of NVIDIA GPUs, including the cutting-edge GB300 NVL72 systems, to power large-scale AI compute across the UAE.
The investment is part of a multi-year partnership with G42, the UAE’s sovereign AI company, and is backed by a U.S. government export license allowing Microsoft to ship advanced NVIDIA chips to the region. This move reflects a strategic balancing act by the U.S., which seeks to expand its AI influence while maintaining control over sensitive technologies.
“This is not money raised in the UAE. It’s money we’re spending in the UAE,” said Brad Smith, Microsoft Vice Chair and President The Official Microsoft Blog.
The deal positions the UAE as a regional anchor for American AI infrastructure, with implications for:
Export control diplomacy: Testing U.S. policies on AI chip exports
Geopolitical alignment: Strengthening tech ties between the U.S. and Gulf allies
AI leadership: Expanding Microsoft’s global footprint in AI services
The partnership also aligns with broader U.S. efforts to counter China’s growing influence in AI and cloud computing across the Middle East and Africa. In May 2025, President Donald Trump reportedly struck a deal with UAE President Sheikh Mohamed bin Zayed to support AI development under American oversight Yahoo Finance Newswav.
Microsoft’s investment will run through 2029, with infrastructure supporting both public and private sector AI applications, including healthcare, energy, and education.
