Abu Dhabi's G42 Explores US Majority Ownership to Secure AI Chip Supply, Bloomberg Reports

Abu Dhabi-based artificial intelligence firm G42 has held exploratory talks about selling a majority stake to American companies, a strategic move aimed at guaranteeing its long-term access to advanced U.S. chips, according to a report from Bloomberg. The discussions highlight the growing pressure on international tech firms to align with U.S. regulations governing high-end semiconductor technology.

Navigating US Chip Restrictions

The potential restructuring is driven by a need to secure access to critical components for its AI development. According to Bloomberg, which cited people familiar with the matter, G42 was recently allowed to purchase cutting-edge AI chips without a U.S. license until around April 2027.

However, continued access beyond that date is reportedly contingent on the company altering its corporate structure to overcome U.S. regulatory hurdles. This timeline creates a clear impetus for G42 to find a compliant long-term solution.

Restructuring Scenarios

Executives at the firm are considering several options to satisfy American regulatory requirements. The proposals being discussed, according to the sources, include:

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• Bringing in a U.S. company as a majority shareholder.
• Establishing an entirely new and separate corporate vehicle based in the United States.

The sources stressed that these talks are exploratory and that no final decisions have been made regarding the company's future structure.

Company Position and Background

A representative for G42 told Bloomberg that the firm "remains focused on executing its long-term growth strategy" and does not comment on "confidential discussions or potential transactions."

G42 was established approximately eight years ago to spearhead Abu Dhabi's primary technology initiative and is overseen by an influential member of the UAE's royal family.