G42 Diversifies Chip Suppliers for UAE-US AI Campus

 

Abu Dhabi–backed technology group G42 is taking a strategic step to diversify its semiconductor supply chain for a planned UAE–US AI campus, according to a Semafor report.

The initiative comes as global concerns rise about supply chain resilience and overdependence on a few key chipmakers, particularly Nvidia, which currently dominates the AI computing market. G42 is in discussions with several U.S. tech giants—Amazon Web Services, Microsoft, Meta, and Elon Musk’s xAI—to become tenants at the state-of-the-art data center. Google is reportedly the most advanced in negotiations, signaling strong interest from major players in the AI ecosystem.

Key Highlights

• G42 plans a UAE-US AI campus with top U.S. tech firms as tenants
• Google is furthest along in negotiations to join the project
• G42 explores AMD, Cerebras, and Qualcomm to reduce reliance on Nvidia

On the chip supplier side, G42 is exploring partnerships with AMD, Cerebras Systems, and Qualcomm, either alongside or in place of Nvidia. This move reflects a growing industry trend of reducing reliance on single suppliers amid increasing scrutiny of semiconductor supply chains.

The backdrop for this diversification is the global semiconductor landscape, where the U.S. share of chip manufacturing has dropped from 37 percent in 1990 to just 12 percent by 2020. This decline has fueled concerns over supply chain concentration, particularly for mission-critical technologies like AI chips.

Also Read: UAE-US AI Chip Deal Pause Hits Nvidia Amid Tech Tensions

By broadening its partnerships, G42 aims to strengthen resilience, reduce operational risks, and ensure the AI campus becomes a robust hub for innovation. For tenant companies like Google, supplier diversity could directly impact cost, performance, and risk management in scaling AI infrastructure.