G42 expands in the US as UAE boosts AI investment under Trump

Abu Dhabi’s G42 sets up US entity as UAE commits billions to AI and technology partnerships.

A cat naps on a bench by Khaled Lagoon at the Buhaira Corniche on March 4, 2024, in Sharjah, United Arab Emirates. Photo by Horacio Villalobos/Corbis

By Anna Fadiah and Hayu Andini

Abu Dhabi-based artificial intelligence firm G42 expands in the US as the United Arab Emirates accelerates its ambitions to become a global powerhouse in emerging technology. The expansion signals a pivotal moment in the Gulf state’s long-term economic diversification strategy, with tens of billions of dollars expected to flow into the American market as part of a broader technology investment campaign under the Trump administration.

Strategic US expansion underway

Corporate filings have confirmed that G42 has established a new American entity, G42 USA, incorporated in Delaware this January. The move is a significant step in the AI firm’s plan to deepen its foothold in the US, a market that UAE leadership increasingly views as vital to its technological and economic future.

In a statement to the Financial Times, G42 affirmed its commitment to the US, declaring that it had “established a legal entity towards that strategy” and was actively working on expansion initiatives.

The company’s cloud and enterprise division, Core42, has already registered US-based entities and is preparing to roll out its services in the country. Meanwhile, other subsidiaries — operating across AI applications, cloud computing, and data centers — are expected to unveil further US-specific business plans in the coming months.

UAE bets big on AI leadership

The United Arab Emirates has made artificial intelligence a core pillar of its post-oil economy. From the introduction of an official Minister of State for AI to investing in advanced technologies for governance and infrastructure, the Gulf state is aligning national policy around tech innovation.

G42’s chairman, Sheikh Tahnoon bin Zayed al-Nahyan, who also serves as the UAE’s national security adviser, has been instrumental in positioning Abu Dhabi as a serious player in global AI development. He has also played a critical role in cultivating ties with Washington, making it clear that the US remains the primary source for cutting-edge AI capabilities.

“Sheikh Tahnoon’s strategy is to secure long-term access to the best AI talent and infrastructure, and that means building strong relationships with US partners,” said a source familiar with the matter.

Trump-era cooperation and massive investment pledges

G42’s expansion has gained momentum during Donald Trump’s return to the presidency, further underlining a new phase of bilateral cooperation. Sheikh Tahnoon’s visit to the White House in March served to cement this partnership. Following the meeting, the Trump administration announced the UAE’s commitment to a $1.4 trillion, 10-year investment framework in the US — a figure more than double Saudi Arabia’s $600 billion pledge over four years.

That level of financial commitment underscores the UAE’s belief in the US as a technology partner and investment destination, even amid Trump’s aggressive stance on tariffs and trade policy.

Building the infrastructure for AI dominance

Beyond the new legal entity and expansion plans, G42 has already made significant inroads in US tech. In 2023, the company invested $335 million in US semiconductor firm Cerebras. Although the deal was closely scrutinized by the Committee on Foreign Investment in the United States (CFIUS), it was eventually approved — albeit with restrictions. G42 was permitted only to purchase non-voting shares, reflecting ongoing concerns over foreign ownership of sensitive tech infrastructure.

G42’s strategic pivot also includes distancing itself from Chinese suppliers. CEO Peng Xiao, originally from China and now a UAE citizen, has led efforts to reduce the group’s exposure to companies like Huawei. The shift has been interpreted as a response to US political pressure, with lawmakers urging foreign investors to cut ties with Chinese tech giants amid escalating geopolitical tensions.

American partners, local adaptation

G42’s American journey is being supported by heavyweight investors. In 2023, Microsoft invested $1.5 billion in exchange for a minority stake in the company. Other prominent investors include Ray Dalio’s family office and Silver Lake, the private equity firm known for its focus on technology assets.

However, not all G42 subsidiaries are jumping into the US market immediately. Khazna, the group’s data center arm, indicated that its current focus remains on Asia-Pacific and other regions. “While we’re closely watching G42’s developments in the US, our priority remains on active markets in APAC for now,” said CEO Hassan Alnaqbi.

Even so, Khazna’s statement suggested flexibility and future involvement, especially if G42’s American ventures gain significant traction.

UAE’s long-term bet on America

The UAE is keen to stress that its interest in the US is more than transactional. Officials have repeatedly framed their investments as a sign of trust and alignment with American innovation and economic policy. “UAE investment institutions are probably one of the largest foreign direct investors into the US economy for the last 20 years,” said Khaldoon al Mubarak, chief executive of Mubadala, during a conference in Washington last month.

The statement highlights a broader trend: Gulf sovereign wealth funds are increasingly choosing to put their capital into long-term tech plays rather than short-term financial speculation. For the UAE, the AI sector represents not only economic opportunity but also political and strategic relevance on the world stage.

An AI-driven alliance

As G42 expands in the US, its actions reflect a calculated approach to becoming a global AI leader. By embedding itself in the world’s most advanced tech market, aligning with prominent American investors, and steering clear of political landmines like Chinese hardware suppliers, G42 is positioning itself — and by extension, Abu Dhabi — at the forefront of artificial intelligence development.

With Trump back in the White House and US-UAE relations entering a new phase, the stage is set for even greater collaboration. Whether through chipmaker investments, data infrastructure, or enterprise AI solutions, G42’s growing American footprint signals a reshaping of the global technology map — one where Gulf capital and US innovation converge.