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Why OpenAI, Microsoft & NVIDIA Are All Betting Big on Abu Dhabi

Simran Mishra

Abu Dhabi Emerges as a Global AI Powerhouse: In 2026, Abu Dhabi has become a major AI destination, attracting OpenAI, Microsoft, and NVIDIA. Massive capital, abundant energy, and strategic partnerships are turning the UAE into a premier global AI hub.

The $500 Billion Stargate UAE Vision: The “Stargate UAE” project aims to build a 5-gigawatt AI campus. Phase 1 launches a 200MW cluster powered by 100,000 NVIDIA chips, forming part of a broader $500 billion global AI infrastructure plan.

Microsoft’s $15.2 Billion Commitment: Microsoft is investing $15.2 billion in the UAE through 2029. This includes $1.5 billion in G42 and over $10 billion for hyperscale AI data centers, expanding Azure and OpenAI services across the region.

NVIDIA Secures the GPU Backbone: NVIDIA plays a central role by supplying advanced AI chips and committing $30 billion in equity to OpenAI. Abu Dhabi’s expansion ensures strong GPU demand and faster deployment of next-gen AI models.

Energy & Infrastructure Advantage: AI data centers require massive power. Abu Dhabi offers low-cost, abundant energy and large land capacity, enabling 200MW to multi-gigawatt clusters that are harder to permit in the U.S. or Europe.

Sovereign Wealth & Strategic Alignment: Abu Dhabi’s MGX fund, targeting $100 billion in AI assets, provides rapid capital at scale. U.S. approval for exporting advanced NVIDIA chips further accelerates regional AI expansion.

The Bigger Picture: AI’s New Global Hub - For OpenAI, Microsoft, and NVIDIA, Abu Dhabi offers compute, capital, and geopolitical diversification. The UAE’s aggressive AI adoption and infrastructure push position it as the “Silicon Valley of AI” in the Middle East.

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