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OpenAI and Nvidia back $100B Stargate AI project in UAE

by admin May 22, 2025
May 22, 2025

The United Arab Emirates is set to become a central player in global artificial intelligence infrastructure as tech giants OpenAI, Oracle, Nvidia, and Cisco partner with Emirati firm G42 to build one of the largest AI campuses in the world.

The Stargate UAE project, confirmed by the companies on Thursday, will be located in Abu Dhabi and marks the international expansion of a sweeping AI development programme launched earlier this year by the Trump administration.

The site is expected to span 10 square miles and feature a 5-gigawatt capacity, with its first 200-megawatt AI cluster scheduled to go live in 2026.

UAE project part of Trump-era $100B AI infrastructure deal

The Stargate UAE initiative stems from a joint infrastructure commitment announced in January by OpenAI, Oracle, and SoftBank.

The US-led plan initially pledged $100 billion in funding for domestic data centre projects and later expanded with an additional $500 billion earmarked for global efforts through 2029.

The UAE campus will be the first major overseas project under this framework, directly supporting the administration’s strategy to build secure, decentralised AI infrastructure with allied nations.

President Donald Trump, during his Middle East visit last week, unveiled a series of commercial AI deals, including the UAE venture.

The collaboration aims to support not only US national AI resilience but also to offer trusted infrastructure to allied governments seeking advanced compute capacity.

OpenAI and Oracle to manage 1 GW of compute

Under the agreement, OpenAI and Oracle will jointly operate a 1-gigawatt compute cluster, with G42 leading construction and deployment.

Nvidia will supply high-performance AI chips, while Cisco is tasked with providing networking and connectivity solutions for the site.

The firms said that the first phase will activate in 2026 with 200 megawatts of AI compute, which will be scaled up to full capacity in phases.

OpenAI noted the partnership is part of its broader initiative to build AI facilities that promote responsible use while strengthening US-aligned digital infrastructure abroad.

Oracle, which already has cloud operations in the region, is expected to integrate Stargate into its international cloud network, allowing the UAE campus to serve as a key node in global AI compute availability.

UAE emerges as AI infrastructure hub

The Stargate UAE project positions the Gulf nation as a critical AI hub amid a broader push by the UAE government to diversify its economy and accelerate digital transformation.

G42, which has partnered with OpenAI since 2023, is a major player in the UAE’s tech ecosystem, overseeing AI projects spanning healthcare, smart cities, and defence.

The new campus will build on this foundation and contribute to local upskilling, energy innovation, and regional AI adoption.

The partnership also aligns with Abu Dhabi’s sovereign investment goals, allowing it to anchor AI infrastructure in the Middle East with support from US technology leaders.

While the project highlights growing ties between US firms and the Gulf state, it also comes as global tech supply chains shift, particularly in data centre energy sourcing and chip availability.

International rollout follows 16-state US expansion plan

In February, OpenAI revealed it was evaluating sites in 16 US states to build similar data centre campuses as part of the original $100 billion initiative.

The UAE project marks the first confirmed international site, although more are expected to follow as the programme expands.

By combining sovereign funding with private sector leadership, the Stargate series of projects represents one of the largest coordinated AI infrastructure developments in history.

It aims to provide compute access for startups, governments, and enterprises in a secure and geopolitically aligned manner, at a time when demand for AI power is rapidly outpacing current capacity.

The post OpenAI and Nvidia back $100B Stargate AI project in UAE appeared first on Invezz

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