G42 is the UAE’s sovereign AI company and it is based in Abu Dhabi. Back in 2023, Microsoft signed a MoU to explore joint business development and marketing opportunities. Later in 2024, Microsoft announced an $1.5 billion equity investment in G42 to deliver AI solutions with Microsoft Azure for organizations in Middle East, Central Asia and Africa.
Apart from the equity investment in G42, Microsoft has invested more than $4.6 billion in AI and cloud datacenters and more than $1.2 billion in local operating expenses and the cost of goods sold in the UAE.
Today, Microsoft announced an expanded partnership to invest more than $7.9 billion in the UAE from the start of 2026 to the end of 2029. This investment includes $5.5 billion in capital expenses for AI and cloud infrastructure and almost $2.4 billion in planned local operating expenses and the cost of goods sold.
Microsoft highlighted that it was one of the few companies to secure export licenses from the Biden government"s Commerce Department to ship GPUs to the UAE. Through this license, Microsoft has brought in an equivalent of 21,500 Nvidia A100 GPUs, based on a combination of A100, H100, and H200 chips. This year, Microsoft also secured licenses from the Biden administration to ship the equivalent of 60,400 additional A100 chips, based on a combination of even more advanced Nvidia GB300 GPUs.
Microsoft will be using these GPUs to provide government, startups, enterprises, and developers in the region with access to advanced AI models from OpenAI, Anthropic, open-source providers, and Microsoft.
Brad Smith, Vice Chair and President, Microsoft, said the following regarding this significant investment in the UAE:
Microsoft is committed to the future of the UAE and a strong relationship between our two nations. We believe in the UAE’s long-term economic vision and the role the UAE and the U.S. continue to play together to support peace, stability, and growth across the Middle East.
This massive new investment from Microsoft solidifies the UAE"s position as a critical AI hub for the Middle East and Central Asia.