Executives at Abu Dhabi-based artificial intelligence company G42 have reportedly begun preliminary discussions about selling a majority stake to a US entity, a move designed to secure ongoing access to high-end chips beyond next year. This potential transaction would result in a significant restructuring of the company's operations and ownership.
G42, which was established around eight years ago under the oversight of an influential royal family member, originally set out to mark Abu Dhabi's first major push into the technology sector. The company has now secured a permit to purchase cutting-edge AI chips from key suppliers without needing a US export license, with this authorization extending until approximately April 2027.
However, to continue purchasing these processors beyond that point, the company will be required to adjust its corporate structure. According to insiders, management is currently exploring various strategies to overcome this hurdle. Options under review include bringing in a US firm as the majority shareholder or establishing a brand-new operational entity based in the United States.
No final decisions have been reached at this stage. A representative for G42 stated that the company remains committed to advancing its long-term growth strategy, while declining to comment on reports regarding confidential negotiations or a potential deal.
G42 currently counts prominent US investors such as Silver Lake and Microsoft among its backers, as well as Abu Dhabi's sovereign wealth fund Mubadala Investment Company, which manages USD 385 billion in assets. Reports from Bloomberg earlier this week indicated the firm has been in preliminary talks with potential investors regarding a fundraising round that could raise billions of dollars.
With operations spanning cloud computing, data centers, and AI applications, G42 has established partnerships with several of the world's top technology companies. The firm is also actively developing a 5-gigawatt UAE-US AI industrial park in Abu Dhabi, which will run on chips supplied by Nvidia.