UAE’s Top AI Firm G42 Considers Selling Majority Stake to US Companies
Highlights
- UAE-based G42 plans to potentially sell a majority stake to American companies.
- The move aims to ensure long-term access to advanced AI chips.
- Sheik Tahnoon-linked companies has ties to Trump-linked World Liberty Financial.
The UAE’s flagship artificial intelligence (AI) group G42 is exploring a sale of a majority stake to American companies, people familiar with the matter said. The move comes as it races to guarantee access to high-tech chips beyond next year. Notably, Sheik Tahnoon-linked companies have ties to Trump-linked World Liberty Financial.
G42 AI Firm Plans Selling Majority Stake for Chips Access
Abu Dhabi-based AI firm G42 held talks over potentially selling a majority stake to American companies, Bloomberg reported on September 4.
This would mark a sharp shift for a company chaired by UAE National Security Adviser Sheik Tahnoon bin Zayed Al Nahyan. The company was built as the Emirate’s main plan for artificial intelligence, cloud, and data center ambitions.
The company aims to ensure long-term access to advanced AI chips after current export arrangements expire. Notably, G42 was allowed to purchase AI chips without a U.S. license until around April 2027.
However, a move by the US to tighten export controls on advanced AI chips impacted G42’s AI plans. The AI company depends on Nvidia and other U.S. chipmakers to power its large-language models.
How Will U.S. Ownership Help the Firm?
G42 cut its China-linked holdings and hardware, including Huawei gear and a stake in ByteDance, in 2024. Majority US ownership could help meet export control and national security concerns that have pressured the firm for years.
Notably, Microsoft already holds a $1.5 billion minority stake and a board seat. Moreover, Silver Lake and Abu Dhabi wealth fund Mubadala Investment Co are also investors. No deal is finalized yet, and the company has declined to comment on the latest discussions.
The UAE is planning to invest $1.4 trillion in the US. This will lead to the Trump administration moving to ease export restrictions on the UAE. However, Sheikh Tahnoon’s StringZ Holding having a 49% majority stake in Trump’s World Liberty Financial’s WLTC Holdings has raised scrutiny.
G42 is also building a 5-gigawatt UAE-US AI Campus in Abu Dhabi, using chips supplied by Nvidia Corp. As part of those goals, the UAE has developed deeper ties with the US despite the Iran war.
Meanwhile, NVIDIA agreed to acquire AI platform Hugging Face for nearly $13 billion. CEO Jensen Huang said, “Together, we will scale Hugging Face’s platform, strengthen its infrastructure and expand access to AI for developers and institutions worldwide.”
As the UAE continues to consolidate its position as a global hub for technological innovation and digital assets, many investors are looking for the best crypto exchanges in UAE and Dubai to manage their portfolio alongside these expanding institutional developments.
Instant Currency Exchange at BestChange with Ease
- Compare Rates Across 1000+ Exchanges
- Access 250+ Cryptocurrencies & Pairs
- Save Time with Real-Time Price Tracking
- Trusted & Verified Exchange Listings
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
