The businessman Elon Musk is facing criticism once more, accused of interfering with an important agreement between OpenAI and the United Arab Emirates involving artificial intelligence. According to people familiar with the negotiations, Musk tried to skimp on the agreement unless his AI company, xAI, was part of it. It becomes clear in the episode that friction is growing between Musk and OpenAI CEO Sam Altman, as they race against other global powerhouses to pioneer new developments in artificial intelligence.
The Deal at the Heart of the Dispute
On May 22, an important partnership between the United States and the United Arab Emirates in AI was announced by OpenAI and backed by Oracle, Nvidia, Cisco, and SoftBank. The intention of the agreement is to set up a big AI data center in Abu Dhabi, named the Stargate UAE. G42, an Emirati AI company chaired by Sheikh Tahnoon bin Zayed al Nahya, who is also the UAE’s national security advisor and brother of the president, is leading the project.
The agreement is included in the UAE’s plan to expand its economy by investing largely in new technologies, with a big emphasis on AI. There are also plans for a similar project in the United States, which will strengthen the technical relationship between the two countries.
Musk’s Push for xAI’s Inclusion
The Wall Street Journal reported that Musk found out in mid-May that Altman would join Trump on an official tour of the Gulf to advertise the deal. Due to the exclusion, Musk told the Emirati authorities that President Trump would refuse to support the partnership if his firm was kept out.
Wanting leadership over the issue, Musk abruptly went to Saudi Arabia and stood next to Trump as the two met with Saudi leaders. Though the administration supported the agreement, sources said that dealing with Musk’s objections caused major difficulties during the talks.
A Long-Running Feud with OpenAI
This event continues to worsen the relationship between Musk and Altman. The two started OpenAI in 2015, but Musk stepped down in 2018 because of disagreements. Since his resignation, Elon has openly said that OpenAI should not have changed its focus and grown so connected to big tech companies. In the same year, Musk also sued Altman, saying Altman had broken the values on which the company was founded.
Even though he opposes OpenAI, Musk is active in the Middle East business world. In 2023, xAI attracted $6 billion in financing, with much of that helped by the UAE’s MGX fund, co-led by Sheikh Tahnoon. A tunnel project in Dubai is also underway by his infrastructure company, the Boring Company. Because of these relationships, Musk’s position on the UAE deal is not simple.
What’s Next for xAI and the Stargate Project
XAI isn’t listed in the initial UAE agreement, but it is among the U.S. firms that may still be part of Stargate when the initiative expands. Musk’s business could get a few high-end AI chips each year as a result of the deal.
Success in the world of global AI collaboration comes from having both influence and easy access. Musk’s attempt to join the UAE’s AI partnership highlights how fierce the battle is between countries and between top tech companies eager to lead in AI.
