Sci-Tech

Musk attempted to derail OpenAI’s UAE data center deal: report

Elon Musk tried to disrupt a major AI data center project in the UAE after his company, xAI, was excluded

Musk attempted to derail OpenAI’s UAE data center deal: report
Elon Musk, Chief Executive Officer of SpaceX and Tesla and owner of X looks on during the Milken Conference 2024 Global Conference Sessions at The Beverly Hilton in Beverly Hills, California, U.S., May 6, 2024.
Reuters/File photo

Elon Musk attempted to derail a major artificial intelligence data center project in the United Arab Emirates because his company, xAI, was not involved, The Wall Street Journalreported.

The project, one of the world’s largest AI infrastructure initiatives, is being spearheaded by OpenAI and several major U.S. tech firms, with the facility planned for Abu Dhabi.

According to sources cited in the report, Musk privately told UAE officials that the deal would not receive approval from U.S. President Donald Trump unless xAI was included.

The report claims Musk became frustrated after learning that OpenAI CEO Sam Altman -- his former co-founder and frequent critic -- was playing a key role in the project and would accompany Trump on a visit to the Middle East in May. Musk reportedly joined the trip himself and voiced his objections directly.

Despite Musk’s intervention, Trump’s administration proceeded with the agreement. A White House official noted that Musk’s concerns were centered on fairness and ensuring a level playing field for all American AI companies.

OpenAI formally announced the deal on May 22, calling it the first international launch of its AI infrastructure platform, Stargate. The agreement involves several high-profile partners, including G42, Oracle, NVIDIA, Cisco, and SoftBank, and was developed in coordination with the U.S. government. OpenAI expressed gratitude to President Trump for facilitating the deal.

Although Musk parted ways with OpenAI in 2018, he has remained a vocal critic of Altman and the company. According to the report, xAI has since been added to the list of U.S. firms authorized to purchase advanced chips under the new agreement.

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