G42 CEO Peng Xiao, speaking at Davos, emphasized the UAE’s proactive investment in AI infrastructure, global partnerships, and rapid development of large-scale data centers, positioning the country as a key player in the global AI landscape. He highlighted the importance of technological independence, upcoming advanced chip imports, and the UAE’s ambitions to expand AI influence across the Global South, while addressing challenges such as job security and energy consumption.
Peng Xiao, CEO of G42, discussed the critical importance of artificial intelligence (AI) as a national priority during an interview at Davos. He emphasized that AI has shifted from being a futuristic concept to an essential utility, akin to electricity or water, that governments and societies are already relying on. Xiao noted that governments worldwide are now racing to implement AI policies that reflect their national values and ensure a degree of technological independence, so that their AI infrastructure cannot be disrupted by external actors.
Regarding the United Arab Emirates (UAE), Xiao highlighted the country’s early and proactive approach to AI. The UAE established its first AI university in 2018 and created a federal ministry dedicated to AI even earlier. These initiatives were driven by the foresight that AI would become indispensable for national development. The UAE has since formed global partnerships, particularly with American companies like Microsoft and OpenAI, and is investing heavily in AI infrastructure, including the construction of a massive AI campus powered by five gigawatts of energy.
Xiao provided an update on the Stargate project, a planned one-gigawatt data center cluster in Abu Dhabi. Construction is progressing rapidly, with over 7,000 workers and 100 cranes operating around the clock. The first 200 megawatts of capacity are expected to come online within months, with plans to add 200 to 500 megawatts per quarter until the full five-gigawatt target is reached. He also confirmed that the UAE will soon receive its first shipment of advanced AI chips, primarily from Nvidia, following U.S. approval and strict security assurances to prevent unauthorized access or technology transfer.
Addressing concerns about the rapid pace and scale of AI investment, Xiao acknowledged issues such as job security, energy consumption, and the risk of some countries being left behind in the global AI race. However, he argued that pausing AI development in the U.S. or allied countries would be a mistake, as other nations would continue to advance and potentially dominate the market. He believes that demand for AI infrastructure, especially for inference (serving end users), will far outstrip supply, making continued investment essential.
Finally, Xiao discussed G42’s broader ambitions, including participation in the U.S.-led PAX Silicon framework for critical materials and semiconductors, and expansion into the global South, particularly Africa. He highlighted the UAE’s advantages in energy and connectivity, positioning Abu Dhabi as a key node in a global AI network serving up to four billion people. While acknowledging challenges in commercializing AI in Africa, Xiao stressed the importance of long-term investment and regional collaboration, viewing the rise of AI ambitions across the Middle East as a collective opportunity rather than a rivalry.