Sheikh Tahnoon in Washington: UAE-US relations reimagined for the 21st century with technology at the core

Sheikh Tahnoon bin Zayed, the United Arab Emirates’ national security adviser and a central figure in its tech and security landscape, visited Washington for high-level engagement with President Donald Trump’s team late last month, signaling a transformative shift in UAE-US relations. His packed itinerary — featuring meetings with Trump, senior administration officials like Commerce Secretary Howard Lutnick and Treasury Secretary Scott Bessent, and tech leaders, including Elon Musk, Jeff Bezos, Mark Zuckerberg, Alex Karp, and Larry Ellison, among many others — underscored a new vision: to elevate technology, particularly artificial intelligence (AI), as the bedrock of a reimagined partnership between the United States and the UAE. As global competition over AI, semiconductors, and digital infrastructure intensifies, Sheikh Tahnoon’s visit highlighted the UAE’s strategic ambition to become a tech superpower while deepening its alignment with the United States amid the swirling currents of US-China rivalry.

The stakes could not be higher. The UAE, historically a linchpin of US interests in the Gulf due to its oil wealth and strategic location, is shedding its hydrocarbon-centric identity to position itself as a global leader in AI, energy innovation, and data infrastructure. Trump, in a Truth Social post, framed the talks with Sheikh Tahnoon as an effort to “increase our partnership for the advancing of our economic and technological futures.” For the UAE, this future hinges on securing access to America’s most advanced technologies — especially AI chips — and forging deeper ties with its tech ecosystem, all while navigating Washington’s stringent export controls aimed at curbing China’s rise.

UAE steps up collaboration with US tech firms

The visit bore immediate fruit. Abu Dhabi sealed a landmark deal with Microsoft to deploy AI services across its government, a stepping stone toward its goal of becoming the world’s first fully AI-native government by 2027. This builds on Microsoft’s $1.5 billion investment in G42 last year and the US approval of the sale of Nvidia’s H100 AI chips to the UAE, cementing Abu Dhabi’s role as a trusted tech partner.

Beyond government innovation, the UAE’s MGX — a $100 billion AI-focused investment vehicle founded by Mubadala and G42 — is making waves in the US. MGX is poised to inject $7 billion into the White House’s Stargate Project, a massive initiative being implemented by OpenAI, SoftBank, and Oracle to build $100 billion to $500 billion worth of AI data centers and infrastructure in the US. This follows MGX’s participation in three of 2024’s largest AI fundraises: Databricks’ $10 billion round, xAI’s $6 billion raise, and OpenAI’s $6.6 billion haul, positioning the firm as a heavyweight in America’s AI landscape.

Soon after Sheikh Tahnoon’s departure, Cerebras Systems cleared a review by the Committee on Foreign Investment in the US (CFIUS) of its ties with the UAE’s G42, paving the way for its long-awaited initial public offering. The review, prompted by G42’s $335 million investment — 5% of Cerebras’ valuation and 87% of its 2024 earnings — began in September. Delays under the new Trump administration slowed the process, but clearance came after Sheikh Tahnoon met with Secretary Bessent to discuss UAE access to US semiconductors.

Challenges remain but path to US-UAE tech partnership is widening

Yet, this partnership is not without friction. The UAE’s AI ambitions depend on access to advanced semiconductors, a resource increasingly weaponized in US national security policy. Classified as a Tier 2 nation under the AI diffusion rule, the UAE faces export curbs that threaten its plans. Sheikh Tahnoon’s discussions with Lutnick and Bessent likely centered on crafting a bespoke US-UAE AI understanding — one that fuels Abu Dhabi’s innovation without tripping Washington’s red lines on technology leakage to adversaries like China. The UAE has already demonstrated its willingness to pivot, phasing out ties with Chinese firms like Huawei and ByteDance. G42’s divestment from Chinese investments and its alignment with Microsoft exemplify this shift, but Abu Dhabi is not merely bowing to US demands — it is leveraging its strategic assets to negotiate favorable terms.

Energy remains a critical lever in this equation. The international arm of Abu Dhabi National Oil Company (ADNOC), XRG, is eyeing US investments in liquefied natural gas (LNG) and specialty chemicals vital for cooling AI data centers, aligning with the UAE’s vision to fuse its energy surplus with tech innovation. Sultan al-Jaber, ADNOC’s CEO, recently rallied a Houston energy conference with a call to “make energy great again,” a nod to Trump’s rhetoric and the UAE’s role as a bridge between traditional and digital economies. Meanwhile, Dubai-based EDGNEX Data Centers by DAMAC announced a $20 billion entry into the US market, targeting a 2,000 MW capacity over four years across Sun Belt and Midwest states like Texas, Ohio, and Arizona. Backed by DAMAC founder Hussain Sajwani — who met Trump at his Mar-a-Lago estate in January — this move underscores the UAE’s commitment to powering America’s AI boom with state-of-the-art infrastructure, potentially doubling its investment based on demand.

Advancement for the UAE is a win for the US

Geopolitically, the UAE’s tech pivot strengthens Washington’s hand in the Middle East, countering China’s technological inroads. The Microsoft-G42 deal, with its Intergovernmental Assurance Agreement, offers a scalable model for tech collaboration that balances US security with allied innovation — a blueprint that could extend to Saudi Arabia, Qatar, and beyond.

The UAE-US relationship stands at a defining juncture. What began as an oil-and-security pact has morphed into a dynamic partnership rooted in AI. The UAE’s vision — articulated by G42 CEO Peng Xiao as “a resilient, future-ready digital infrastructure” — is taking shape, with US technology as its backbone. In an era where AI defines power, Sheikh Tahnoon’s visit may herald a new chapter — one where the Gulf and the West reshape the 21st century together.

 

Mohammed Soliman is a Senior Fellow at the Middle East Institute, where he explores the policy challenges associated with the intersection of technology, geopolitics, and business in the Middle East and emerging markets.

Photo via UAE Embassy press release