Elon Musk has reportedly attempted to disrupt OpenAI’s major partnership with UAE-based G42 to develop one of the world’s largest AI data center clusters in Abu Dhabi. The $5 GW project, announced last week, would position the UAE as a key player in global AI infrastructure. Musk allegedly intervened during discussions with G42 executives, warning that U.S. regulatory approval under a potential Trump administration would require inclusion of his own AI venture, xAI.
The intervention highlights intensifying competition between Musk and OpenAI, which he co-founded before leaving in 2018. G42, chaired by UAE National Security Advisor Sheikh Tahnon bin Zayed Al Nahyan, represents a strategically significant partner given its government ties. Musk’s push to insert xAI into the deal suggests concerns over being sidelined in critical AI infrastructure development, particularly in geopolitically important regions.
The confrontation underscores how commercial AI rivalries are increasingly intersecting with geopolitics. With the UAE seeking to establish itself as an AI hub, Western tech leaders appear divided over how to engage – whether as collaborators or competitors. Musk’s warning about Trump-era approvals introduces an additional layer of political uncertainty to what was initially positioned as a commercial technology partnership.
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