Microsoft Invests 15B USD in UAE AI Push, Wins U.S. Chip Approval

Microsoft is going big in the United Arab Emirates, promising to spend more than $15 billion by 2029 to build AI and cloud systems.

The tech giant also just got permission from the U.S. government to ship powerful Nvidia chips to the UAE, a move that could make the desert nation a major player in artificial intelligence.

Microsoft’s president, Brad Smith, announced the plan during a trip to Abu Dhabi. He said the company has already spent $7.3 billion in the UAE since 2023, with another $7.9 billion coming by 2029.

Most of that money will go toward expanding AI data centers. "The biggest share... is the expansion of AI data centers across the UAE," Smith told. "It's an investment critical to meet the demand here for the use of AI."

• Microsoft invests $15B in UAE AI expansion, secures U.S. approval for Nvidia chip exports
• Microsoft to boost UAE’s AI growth with $15B plan and top-tier Nvidia AI processors
• U.S. clears Microsoft to ship Nvidia chips as it pours $15B into UAE’s AI infrastructure

The deal hinges on special U.S. export licenses that let Microsoft bring in advanced Nvidia chips—think of them as the brains behind cutting-edge AI. The approvals cover the equivalent of more than 81,900 high-end Nvidia A100 chips, including newer models like the H100 and H200. Shipments should start in the next few months. This builds on earlier approvals from last year that allowed about 21,500 of the older chips.

Microsoft has been deepening ties with G42, an Abu Dhabi AI company it invested $1.5 billion in back in 2024. Smith sits on G42’s board. The firm used to work closely with Chinese companies, which raised eyebrows in Washington. But G42 has since promised to follow U.S. rules and partner mainly with American firms. "G42 had made enormous progress in implementing the systems required to comply with U.S. law," Smith said.

Yet, the deal isn't without controversy. U.S. lawmakers, including House Select Committee on the Chinese Communist Party Chair John Moolenaar, warn of the UAE's deepening tech bonds with Beijing. "The UAE and China maintain a close technology partnership," Moolenaar cautioned, urging Abu Dhabi to "verifiably and irreversibly choose America."

The UAE has been pouring oil money into tech to become a global AI leader. Microsoft’s cash is separate from a giant data center project called Stargate UAE, announced earlier this year with President Trump’s backing.

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For everyday people in the region, this could mean faster AI tools in healthcare, energy, and finance. For Microsoft, it’s a chance to grow its cloud business in a fast-rising market. And for the world, it’s another sign the AI race is heating up—with the UAE right in the middle.