Wooing with ooze: UAE uses oil wealth to secure strategic AI partnerships with the US

The UAE is leveraging its immense wealth to establish strategic technological partnerships with the United States, particularly in artificial intelligence. A recent White House dinner between President Trump and Sheikh Tahnoon bin Zayed Al Nahyan highlights the growing ties between American tech leaders and Emirati investment funds, creating a new dimension of influence that extends beyond traditional diplomatic channels into the rapidly evolving AI landscape.

The big picture: Sheikh Tahnoon, the UAE’s national security advisor and brother of Abu Dhabi‘s ruler, met with President Trump at the White House for a banquet dinner that focused heavily on strengthening technological partnerships.

• Trump acknowledged the meeting on Truth Social, highlighting “ways for our countries to increase our partnership for the advancing of our economic and technological futures.”
• Artificial intelligence dominated Sheikh Tahnoon’s agenda during his Washington visit, with his itinerary including meetings with tech leaders Elon Musk and Oracle co-founder Larry Ellison.

Follow the money: The UAE has established a pattern of strategic technological investments in American AI companies, using its oil wealth to secure positions in the industry’s most significant players.

• Microsoft invested $1.5 billion last year in G42, an Emirati AI company chaired by Sheikh Tahnoon.
• Emirati funds including Dubai’s DAMAC and Abu Dhabi’s MGX (also chaired by Sheikh Tahnoon) have made substantial investments in leading U.S. AI companies like OpenAI, Anthropic, and Elon Musk’s xAI.
• The financial relationship has continued into the Trump administration, with MGX investing in Trump’s recently announced $500 billion “Stargate” project to develop U.S. AI infrastructure.

Why this matters: The UAE’s tech-focused diplomatic strategy represents a sophisticated evolution of soft power, using financial investments to secure influence within America’s emerging AI ecosystem while simultaneously strengthening bilateral relations.