G42 logo on a digital circuit board background, representing Abu Dhabi's G42 AI campus and their efforts to diversify chip suppliers.
The G42 logo against a digital circuit background, symbolizing the company's strategic push to diversify chip suppliers for its ambitious AI campus project.

Semafor: Abu Dhabi’s G42 seeks wider chip suppliers for AI campus

TECHi's Author Dr Layloma Rashid
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Dr Layloma Rashid
Dr Layloma Rashid
  • Words 372
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G42 is an ambitious initiative by the technology group supported by Abu Dhabi to consolidate its presence in the fastest-growing sector of artificial intelligence. Recently, the company announced that it will diversify its UAE-U.S. AI campus chip suppliers, no longer focusing heavily depending on Nvidia. This kind of activity highlights both the growing tension in the chip complex and the need to reduce dependence on a single supplier.

Nvidia has controlled the AI chip market, but the worldwide scramble to create computing power is compelling firms such as G42 to consider alternative possibilities. The group is also negotiating with big American tech companies to become tenants of the campus. They are Amazon Web Services, Microsoft, Meta, and xAI, invented by Elon Musk. Google is also said to be the company that is most advanced in negotiations. With these companies on board, the AI campus may soon become a global centre where some of the most powerful players in the industry gather.

G42 also talks about possible supply relationships with chip-makers, including AMD, Cerebras Systems, and Qualcomm. This is an indication that there is a desire to diversify risk, to have a consistent supply of computing power. The approach is feasible and visionary in a world that has seen chip crunches interrupt manufacturing across various industries globally. It is also the reason why G42 is similar to a corporation that can ensure the balance of geopolitics, as the AI business is not the safest one due to its technology and security issues.

The AI campus was first unveiled when President Donald Trump visited UAE in May, where he announced agreements with the Gulf state valued at over $200 billion. Since then, the project has attracted a lot of attention not only due to its economic scale but also due to its strategic impact. G42 is making great efforts to make the UAE a center of global AI by attracting foreign tech-focused firms and creating diversified chains of supply.

In general, the shift can be characterized as both ambitious and cautious. G42 would like to build a strong AI ecosystem without relying too much on any of the suppliers or partners. This balance could be the key to the eventual success of the campus.

Reuters

Reuters

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The group is negotiating with major American technology firms, including Amazon’s (AMZN.O), opens new tab AWS cloud, Microsoft (MSFT.O), opens new tab, Meta (META.O), opens new tab, and Elon Musk’s xAI to become tenants at the data center, with Google (GOOGL.O), opens new tab the furthest along in negotiations, according to the report.

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