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 least a little

The US Commerce Department reclassified the UAE into a more favorable export category in July 2026, a move that allows easier acquisition of high-performance AI chips and dual-use technologies for a nine-month window. That reclassification followed the UAE’s cooperation with the US during the Iran conflict.

Prior to the reclassification, G42 had already secured approval for up to 35,000 Nvidia Blackwell-equivalent chips in November 2025. Discussions about larger volumes are ongoing.

The nine-month window attached to the July 2026 reclassification creates a degree of urgency. Reincorporating as a US entity would offer something more durable: structural access rather than time-limited access.

What a US reincorporation actually changes

Reincorporating as a US firm with majority American ownership fundamentally alters how regulators, partners, and customers perceive and interact with the company. A US-domiciled entity falls under different legal frameworks, faces different disclosure requirements, and can access certain procurement and partnership opportunities that are simply unavailable to foreign firms.

Microsoft’s $1.5 billion bet was contingent on G42 cleaning up its geopolitical profile. A US reincorporation would represent the completion of that process, potentially opening the door to additional large-scale investment from US institutional players.

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