Musk threatens to disrupt OpenAI deal with UAE demanding to include xAI in project
An interesting technological drama is unfolding in the Middle East involving the world’s largest artificial intelligence players. OpenAI and the Abu Dhabi government concluded an agreement to create a powerful data center. But there’s one problem – Elon Musk made considerable efforts to change the terms of this deal. He insisted on including his own startup xAI in the agreement and even used quite an unconventional argument in negotiations with G42 fund. Musk told UAE representatives that the Trump administration would not approve the deal if xAI wasn’t participating in it. For the United Arab Emirates, artificial intelligence development is a strategic issue of economic diversification and reducing dependence on oil revenues. And the country has already promised serious investments in the US economy and is actively working on softening export rules for high-performance artificial intelligence chips. Therefore, attracting American technology companies became a key element of their strategy. So xAI company is still considered as a potential candidate for future placement of its computing capacities in the region.
Musk and OpenAI’s confrontation for influence in the Emirates shows that the real artificial intelligence race is not only about technologies. But also about control over physical infrastructure in geostrategically important regions. Where resources are available for creating world-scale computing capacities.
