The complex dynamics of the global artificial intelligence (AI) race have recently been influenced not only by technological advancements but also by sharp rivalries, political leverage, and strategic diplomacy. One such high-profile case involves Elon Musk, the CEO of xAI, who reportedly exerted behind-the-scenes pressure on officials in the United Arab Emirates (UAE) to demand inclusion of his company in a multibillion-dollar AI data centre deal that was primarily led by OpenAI, the creator of ChatGPT.

Musk’s Strategic Pressure on UAE Officials

According to reports, Musk privately warned G42, a key Emirati AI firm, that the US government under former President Donald Trump would not approve the ambitious AI data centre deal unless xAI, Musk’s company, was given a place in the project. This intervention came after Musk learned that OpenAI CEO Sam Altman was slated to join Trump’s diplomatic tour of the Gulf region. Musk, who had a fallout with Altman after co-founding OpenAI, swiftly joined the trip himself, appearing publicly alongside Trump in Saudi Arabia while simultaneously lobbying for xAI's inclusion.

Despite Musk’s claims of concern over fairness and equal opportunities in AI, insiders suggest his true motivation was to prevent Altman and OpenAI from gaining exclusive advantage without xAI. While the Trump administration reviewed Musk’s objections, they eventually decided to proceed with the deal as planned, aware that delaying it could undermine the diplomatic significance of the announcement.

The Scale and Scope of the Stargate UAE Project

The AI deal, known as Stargate UAE, envisions the construction of a massive five-gigawatt AI data centre cluster located in Abu Dhabi. The project is backed by G42, funded by the UAE’s national security adviser, Sheikh Tahnoon bin Zayed al Nahyan. As part of the agreement, G42 also committed to building a similar AI data centre complex in the United States. This commitment helped secure US government backing after Sheikh Tahnoon's visit to the White House earlier in March.

The initiative involves major US tech companies including Oracle, Nvidia, Cisco, and SoftBank, alongside OpenAI. However, Musk’s xAI was notably missing from the initial announcement, highlighting the ongoing tensions between Musk and OpenAI leadership.

History of Musk and OpenAI Rivalry

Elon Musk’s opposition to OpenAI is longstanding. He left the company in 2018 following a power struggle with Sam Altman and has since been openly critical of the organisation. Musk also launched xAI as a direct competitor but has struggled to match the global success OpenAI has achieved with products like ChatGPT. Despite this, xAI managed to raise $6 billion in funding, including investments from the UAE’s MGX fund.

Musk’s influence goes beyond business. As a major donor to the Republican Party and a close adviser to Trump, he has poured hundreds of millions into the former president’s re-election campaign and retains a significant role in shaping US technology policy. Even after stepping down from the White House’s government efficiency task force, Musk’s political and strategic clout remains considerable.

Future Prospects for xAI in the AI Cluster

Though xAI was excluded from the initial Stargate UAE deal, it remains on a shortlist of US companies pre-approved to receive up to 500,000 chips annually under the US-UAE technology cooperation pact. This positions Musk’s company well for potential participation in future phases of the AI data centre expansion.

Officials involved in the deal stress that the arrangement reflects a careful balance between strengthening US technological leadership and maintaining strong diplomatic and business relationships with the UAE, a key Middle Eastern partner.

The Broader Implications of AI Rivalries and Geopolitics

The Musk-Altman feud exemplifies how personal rivalries, political alliances, and geopolitical interests are increasingly shaping the global AI landscape. The race to lead AI innovation is no longer purely about technology; it also involves strategic manoeuvring on the international stage, with countries and companies vying for influence through large-scale infrastructure projects and alliances.

In summary, Elon Musk’s move to pressure UAE officials underscores how intertwined business ambitions and political strategy have become in the evolving AI ecosystem. The global AI race is being driven not just by technological breakthroughs, but also by the personalities and power plays of its leading figures. As this rivalry unfolds, it will continue to impact the future of AI innovation and international cooperation.

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