The CEO of the United Arab Emirates’ leading AI company emphasized the Gulf nation’s reliability as a partner for the United States in safeguarding sensitive technology. This statement comes as the U.S. government reportedly considers limiting chip sales to certain countries, particularly in the Middle East. Peng Xiao, the CEO of UAE AI firm G42, assured CNBC at a conference in Dubai that the UAE can “guarantee the safety and the security” of chips deployed and used within the country.
These remarks align with ongoing discussions within President Joe Biden’s administration about restricting chip sales from Nvidia and AMD to the Middle East. Concerns have been raised that American technology and intellectual property might end up with China, as reported by Bloomberg. Xiao expressed an understanding of the U.S. policymakers’ position, stating the UAE’s transparency and safety assurances regarding technology. He anticipates more collaboration and technology sharing between the two countries.
While the CEO did not detail the measures in place to ensure the security of potential chip imports, CNBC has reached out to the company for further information. The U.S. has previously flagged concerns over G42’s connections with China and its collaborations with Beijing-based companies, which Washington sees as a potential security threat. In February, G42 sold its stake in Chinese companies, including Bytedance, to placate American partners. Earlier this year, Kiril Evtimov, G42’s Chief Technology Officer, told CNBC that the decision to sever ties with China was driven by commercial and technological considerations.
In a move endorsing the UAE’s AI initiatives, Microsoft entered into a $1.5 billion agreement in April with Abu Dhabi’s G42. The UAE President, Mohammed bin Zayed al Nahyan, recently led a delegation to Washington, including Xiao and G42 Chairman Sheikh Tahnoon. During the visit, the UAE and the U.S. issued a joint statement on AI cooperation, reaffirming their shared commitment to advancing AI technologies and establishing a government-to-government memorandum of understanding.
Xiao described the bilateral relationship between the U.S. and the UAE as stronger than ever, with Emirati ambassador Yousef al-Otaiba highlighting the UAE’s rapid advancements in AI in alignment with the U.S. The UAE already has investments in the U.S. valued at $1 trillion, with its sovereign wealth funds being major investors in American sectors such as real estate, infrastructure, and technology. Abu Dhabi aims to expand this partnership through AI.
In related developments, OpenAI CEO Sam Altman proposed that the UAE could serve as a “regulatory sandbox” for testing artificial intelligence globally. The region’s AI ambitions are not confined to the UAE; Saudi Arabia is also seeking access to advanced U.S.-made technology, specifically Nvidia’s powerful H200 chips used in OpenAI’s GPT-4o. A senior official at the Saudi Data and AI Authority, Abdulrahman Tariq Habib, indicated to CNBC that Saudi Arabia expects to access these chips “within the next year.”
