Microsoft has announced a $15.2 billion strategic investment in the United Arab Emirates (UAE) by 2029, a move aimed at boosting artificial intelligence and cloud computing.
It has been officially announced by Microsoft’s vice chairman and president Brad Smith that they will invest $7.3 billion in the country from 2023 and will spend $7.9 billion more by the end of 2029.
The deal primarily sent US chipmaker Nvidia shares up to 2.6 percent, buoyed by hopes the AI juggernaut could expand sales of its most advanced chips to more markets.
According to Smith, the investments have been stimulated by both the US and UAE governments and involved a partnership with the country’s G42 sovereign artificial intelligence company.
On the contrary, approximately two-thirds of the money will be spent on developing AI and cloud data centers in the UAE, and one-third of it on projected operating costs.
In this connection, Microsoft acclaimed the “substantial work we did to meet the strong cybersecurity, national security, and other technology conditions required by these licenses.”
Smith further said, “We’re using these GPUs to provide access to advanced AI models from OpenAI, Anthropic, open-source providers and Microsoft itself.”
Microsoft is effectively pairing its massive AI infrastructure with deep investment in aligning talent, training, and governance.
Additionally, the multinational technology company will train a million residents by 2027 and will use Abu Dhabi as a regional headquarter for AI research and model development.