Microsoft has shared details regarding its AI business dealings with the United Arab Emirates (UAE), and once again, it seems like NVIDIA has the most to gain.
In a blog post published on November 3, 2025, Microsoft outlines its massive UAE investment plan that began in 2023. Microsoft says that by the end of this year, it will have more than $7.3 billion USD in spending and investments in the country.
Breaking that down a bit, the sum includes a $1.5 billion equity investment in the UAE's AI company, G42. Roughly $4.6 billion has been spent on "capital expenses" surrounding AI datacenters in the UAE. In comparison, another $1.2 billion has been set aside for "local operating expenses and the cost of goods sold."
The $7.3 billion earmarked for the end of 2025 is just half the total investment. Beginning in 2026 and running through until the end of 2029, Microsoft says it plans to invest another $7.9 billion USD in the UAE.
About $5.5 billion more will go towards expanding AI cloud infrastructure (aka data centers), and Microsoft says it plans to share more details about the buildout this week in Abu Dhabi. Tacked on to the sum is another $2.4 billion for additional local operating expenses and selling costs.
Microsoft altogether wants to invest about $15.2 billion in the UAE's AI buildout by the end of 2029, should everything go according to plan.
The ongoing battle involving AI, GPUs, and export licenses
How does this investment cycle benefit NVIDIA? It's all about the specialized GPUs made specifically for AI datacenters, of which NVIDIA is currently leading the way.
Microsoft points out that it was one of the few select companies to receive export licenses under the Biden administration, which allowed it to ship GPUs made for AI to the UAE.
Getting more specific, Microsoft says the Biden-era export licenses allowed the company to build up a collection of specialized AI GPUs in the UAE totaling "the equivalent of 21,500 NVIDIA A100 GPUs," with a combination of A100, H100, and H200 chips.
Microsoft also says it was the first to receive the same necessary UAE export licenses under the current Trump administration. This deal was only approved in September 2025, and Microsoft says they were "based on updated and stringent technology safeguards."
This wording no doubt refers to the issues that NVIDIA and AMD have had receiving GPU export licenses for other countries, especially China, over fears that foreign countries are using the advanced US technology for military training or other nefarious purposes.
Microsoft's new set of export licenses allows it to ship "the equivalent of 60,400 additional A100 chips," and this time the company says the package will include "NVIDIA's even more advanced GB300 GPUs."
Speaking to CNBC at the ADIPEC conference in Abu Dhabi, Microsoft's President Brad Smith said:
We’re very grateful to the Secretary of Commerce Howard Lutnick, and the work that he has championed to enable export licenses to be made available to us. That builds as well on the relationships we had with Secretary [Marco] Rubio when he was in the Senate and Democrats as well. [It] takes two parties to govern, and we keep that in mind.
Microsoft President Brad Smith
These chips are being used to "provide access to advanced AI models from OpenAI, Anthropic, open-source providers, and Microsoft itself." Microsoft also says it's supporting "AI-enabled applications, including our Copilot applications, from a wide variety of local and international providers."
The UAE is indeed becoming a bit of an AI hotspot. According to a recent Microsoft AI Diffusion Report, the UAE leads the world in per capita AI usage, with 59.4% of its population using generative AI in some manner. The only other country sitting above 50% usage is Singapore with 58.6%. For reference, the US sits somewhere between 20-30%.
Microsoft's big announcement in the UAE caused NVIDIA shares to climb about 2.17% on Monday, while Microsoft lost about 0.17% in the same period.
FAQ
How much is Microsoft investing in the UAE?
Microsoft plans to invest $15.2 billion by 2029, with $7.3B already spent by the end of 2025 and another $7.9B planned through 2029.
Where is the money going?
Spending includes $1.5B equity in G42 (a UAE AI firm), $4.6B on AI datacenter infrastructure, and billions more on local operations and expansion.
Why is NVIDIA benefiting?
Microsoft’s export licenses allow it to ship tens of thousands of NVIDIA’s A100, H100, H200, and new GB300 GPUs to the UAE, cementing NVIDIA’s role as the backbone of AI datacenters.
What are NVIDIA A100, H100, H200, and B300 GPUs?
NVIDIA makes a range of GPUs designed specifically for AI workloads, and they include A100, H100, H200, and B300 models.
You can think of the A100 as a foundation. The H100 built on that foundation to deliver a significant power boost, and the H200 is essentially an upgraded version of the H100.
While the H100 and H200 use NVIDIA's Hopper architecture, the new B300 models have made the change to the Blackwell architecture. Compared to the older chips, the B300 represents a massive performance and memory upgrade.
What are export licenses?
US export licenses are permits required to sell certain goods to other countries, including GPUs made for AI. Export licenses are designed to bolster national security and help align foreign policy objectives, but they can be used as leverage. Just look at the previous deal NVIDIA and AMD struck with the US government to hand over 15% of its AI GPU profits in China in order to receive the permits.
Is NVIDIA the most valuable company in the world?
Yes, NVIDIA continues to sit at the top of market charts with a $5.036 trillion valuation. It only hit the $5 trillion mark last week.
Microsoft currently sits in third place with a $3.842 trillion valuation, with Apple just ahead at a $3.975 trillion valuation.
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