G42, a prominent artificial intelligence and advanced technology group based in the United Arab Emirates, has announced the launch of its new subsidiary, G42 Europe & UK, headquartered in London. This strategic expansion aligns with G42’s recent initiatives to establish data centres and computational clusters across France and Italy, alongside keen interest from other European countries. The firm aims to harness its extensive network of supercomputing infrastructure and AI capabilities to deliver comprehensive, scalable AI services tailored to sectors such as financial services, healthcare, manufacturing, and energy. G42 Europe & UK will focus on supporting data-sovereignty efforts and facilitating the deployment of next-generation AI infrastructure in collaboration with regional and national bodies.

The subsidiary is co-chaired by Omar Mir, International Board Member at World Wide Technology, and Marty Edelman, Group General Counsel of G42. Omar Mir has emphasized the importance of localising G42’s AI expertise for European and UK markets to drive digital transformation and build resilient AI infrastructure through partnerships between public and private sectors. Marty Edelman highlighted the dynamic nature of the UK and European markets, underscoring their vast opportunities for AI-driven innovation bolstered by deep regulatory understanding and world-class technology solutions.

G42’s reputation as a significant player in the Middle Eastern technology ecosystem is underpinned by its international collaborations. Most notably, the company has partnered with Microsoft in efforts to accelerate AI adoption throughout the Middle East. This alliance is part of a broader strategy connecting G42 to global technology powerhouses. For example, Khazna Data Centres, majority-owned by G42, recently teamed up with Nvidia to establish AI factories across the Middle East and Africa. Such ventures illustrate G42’s commitment to expanding AI infrastructure and capability both regionally and internationally.

The broader context of G42’s expansion ties into a wave of ambitious AI investments by Gulf states, notably the UAE and Saudi Arabia, which are aggressively positioning themselves as global AI leaders. These nations are diversifying their economies away from oil dependence by building advanced AI infrastructure powered by their abundant energy resources. Projects such as Stargate UAE, a massive AI data campus in Abu Dhabi, represent this strategic ambition. Stargate is being developed in partnership with major US and Japanese technology firms including Nvidia, Oracle, Cisco, SoftBank, and OpenAI, with G42 as a key regional collaborator.

Stargate UAE, which aims to launch in 2026, is expected to host one of the world’s largest AI computing clusters, initially deploying 100,000 Nvidia AI chips and eventually scaling up to five gigawatts of data center capacity managed by U.S. firms. OpenAI’s involvement in Stargate reflects its “OpenAI for Countries” program, designed to expand AI infrastructure globally. This partnership notably includes offering the entire UAE population access to ChatGPT Plus subscriptions, a world-first initiative.

Despite the strong momentum, the Stargate project faces significant geopolitical and security complexities. U.S. officials maintain cautious oversight due to enduring concerns about technology diversion risks and the UAE’s close ties with China, particularly given the continued involvement of Chinese companies like Huawei and Alibaba Cloud in UAE infrastructure. These concerns have delayed final agreements and implementation timelines, with no firm finalization set for the multibillion-dollar deal. Washington’s bipartisan scepticism underscores the sensitive balance of harnessing cutting-edge AI innovation while safeguarding strategic technology transfer.

The Gulf’s push into AI is also marked by efforts to attract global talent through favourable policies such as golden visas and tax incentives while forming alliances with Western technology leaders like Microsoft, Nvidia, AMD, and newer entrants like Mistral. However, experts note that the region still faces challenges in developing indigenous AI research capacity and seeding homegrown AI companies, important steps to establish long-term AI leadership beyond infrastructure.

Within this wider strategic environment, Microsoft’s $1.5 billion investment in G42, which includes a seat for Microsoft President Brad Smith on G42’s board, reflects growing Western corporate engagement with the Emirates-based AI leader. This collaboration focuses on running G42’s AI applications on Microsoft’s cloud, amplifying the company’s reach across the Middle East, Central Asia, and Africa, while promising to accelerate digital and AI innovation.

Looking wider at the AI infrastructure landscape, OpenAI and its partners, including Oracle, SoftBank, and Nvidia, are also developing massive AI data centre projects in the United States, such as a 1.2 gigawatt facility in Texas. Oracle alone plans to purchase $40 billion worth of Nvidia chips to power these centres, which signify OpenAI’s shift toward more diversified infrastructure partnerships beyond Microsoft. The Stargate projects, both in the US and the UAE, aim to raise vast sums—potentially up to $500 billion—to support global AI infrastructure ambitions, placing G42’s expansion into Europe and the UK within the context of an emerging, globally interconnected AI ecosystem.

While G42’s European venture signifies a localisation of AI capabilities and regulatory expertise for a key global market, the group’s role within the broader Gulf AI ecosystem remains tethered to complex geopolitical considerations and the strategic ambitions of states balancing technological leadership with security vigilance.

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Source: Noah Wire Services