G42 considers US ownership to secure AI chip access

G42, Abu Dhabi’s flagship AI and cloud computing company, is exploring a full reincorporation as a US entity, with majority ownership shifting to American investors, a move designed to remove the friction that currently stands between Gulf-based AI ambitions and the advanced chips needed to pursue them. At stake is access to processors from Nvidia and AMD. For G42, which is chaired by Sheikh Tahnoon bin Zayed Al Nahyan, getting those chips without export licensing headaches is worth restructuring the entire company around. The chip problem driving the restructuring US export controls have made it genuinely complicated for non-allied nations to procure advanced AI semiconductors at scale. G42 drew scrutiny for years over its historical ties to Chinese technology companies, including Huawei. Microsoft’s $1.5 billion investment in G42, finalized in April 2024, came with a pointed condition: G42 had to divest from its Chinese investments. G42 CEO Peng Xiao has pursued this alignment methodically, including implementing a tracking system called the Common Operating Picture, designed to give US partners visibility into where chips end up after purchase. Washington opens the door, at leas...