UAE Seeks US Partnership to Boost AI Abilities & Expertise

Global use of AI is experiencing rapid evolution, with nations vying for technological supremacy.

The United Arab Emirates (UAE) and the United States are forging a strategic partnership that could significantly impact the global AI ecosystem.

This collaboration comes at a time when the AI industry faces critical challenges, including the need for sustainable development practices, ethical considerations and the environmental impact of large-scale AI operations.

The AI sector's energy consumption has also become a growing concern, with data centres and machine learning models requiring substantial power.

This has led to initiatives focusing on energy-efficient algorithms and sustainable computing practices.

Simultaneously, the industry grapples with issues of bias in AI systems, data privacy and the societal implications of widespread AI adoption.

In this context, the recent meeting between UAE President Sheikh Mohamed bin Zayed al-Nahyan and US President Joe Biden in Washington, marks a significant step towards addressing these global challenges while advancing AI capabilities.

Strategic AI collaboration

The UAE, traditionally reliant on oil exports, is actively diversifying its economy with a focus on technology and innovation.

The nation sees AI as a key component of its economic strategy and views the US, home to leading tech giants and research institutions, as a crucial partner in this transformation.

The leaders instructed officials to develop a memorandum of understanding on AI cooperation, a crucial step towards formalising the partnership.

This move aligns with the UAE's efforts to position itself as a global AI hub, exemplified by initiatives like the establishment of the Mohamed bin Zayed University of Artificial Intelligence.

Anwar Gargash, Sheikh Mohamed's diplomatic adviser, emphasised the transformative potential of AI, stating: "AI and new changes in cloud computing are going to change the way the world looks. We cannot let this sort of wave of technological breakthroughs pass by us."

Navigating export control challenges

Despite the enthusiasm for collaboration, the UAE's AI ambitions face hurdles due to US export controls.

In 2023, the US added Gulf states to a list of countries restricted from freely importing advanced AI chips, citing concerns about potential technology leaks to China.

This restriction has impacted UAE companies' AI plans, as they now need to apply for licences to import cutting-edge US-made AI chips, causing delays in some projects.

These chips, such as NVIDIA's A100 and H100 GPUs, are crucial for training large language models and other advanced AI applications.

Brad Smith, president of Microsoft, which invested US$1.5bn in the UAE's AI group G42 in April, told the Financial Times that clarity over the export controls was "emerging", but it had "taken several months to work through".

Smith added that export applications by Microsoft and other technology companies were not fully complete but were "getting very close".

Expanding AI partnerships and investments

Despite these challenges, the UAE continues to forge ahead with its AI strategy, deepening relationships with US tech companies.

G42, a leading AI and cloud computing company in the UAE, recently announced a collaboration with NVIDIA, a US-based company specialising in AI hardware and software, on a weather forecasting initiative.

This project demonstrates the potential for AI applications in addressing global challenges like climate change, utilising technologies such as machine learning models for weather prediction and climate modelling.

The UAE is also leveraging its financial resources to invest in AI infrastructure.

MGX, a new Abu Dhabi investment vehicle dedicated to AI, has joined forces with asset manager BlackRock, Global Infrastructure Partners, and Microsoft to launch a US$30bn fund for investing in data centres and the energy to power them.

This investment highlights the UAE's commitment to building the physical infrastructure necessary for AI development and deployment, including high-performance computing facilities and energy-efficient data centres.

As the global AI race intensifies, the outcome of these discussions between the UAE and US could have far-reaching implications for the development and deployment of AI technologies worldwide.

The collaboration represents a significant step in shaping the future of AI, with potential impacts on various sectors including finance, healthcare and national security.

Anwar concludes, emphasising the economic imperative driving the UAE's AI push: "If we believe that hydrocarbon is on the way out, slowly but surely, then we have to replace the revenue stream through something else."

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