Musk tried to block OpenAI's UAE deal, but he failed
What's the story
Elon Musk tried to stop OpenAI from securing a major artificial intelligence (AI) infrastructure deal in the Middle East, according to The Wall Street Journal.
The condition was that his own AI company, xAI, should be included in the project. However, his efforts were unsuccessful.
The deal involves OpenAI and other US tech firms partnering with G42, an Emirati AI company, to build a massive data center complex with a 1GW AI computing cluster in Abu Dhabi.
Deal dynamics
Musk learned about the deal only recently
The Abu Dhabi facility will be part of a larger initiative called Stargate UAE, under Project Stargate, announced earlier this year.
The facility is expected to become one of the world's largest AI computing hubs, with servers powered by advanced chips from companies like NVIDIA and operated by SoftBank, Cisco, and Oracle.
Musk learned about the OpenAI deal just before US President Donald Trump's Gulf tour earlier this month and rushed to the Middle East with Trump.
Pressure tactics
Demand for xAI's inclusion in the project
When Musk learned that OpenAI CEO Sam Altman would be on the trip and a deal in the UAE was being finalized, he reportedly got furious and demanded that his firm, xAI, be included in the project.
During a call with G42 officials, chaired by UAE national security adviser Sheikh Tahnoon bin Zayed, Musk allegedly warned that Trump wouldn't approve any such deal unless xAI had a seat at the table.
Deal approval
White House officials reviewed the agreement
Despite Musk's pressure, the deal moved forward without his involvement.
White House officials reviewed the agreement after Musk's intervention but ultimately allowed it to proceed as planned.
One official described Musk's concern as being about "fairness for all AI companies," though others noted his long-term rivalry with Altman may have played a key role in this incident.
Rivalry history
Musk's departure from OpenAI and subsequent actions
Musk co-founded OpenAI in 2015 but left in 2018 after a power struggle. He has since publicly criticized his former co-founder for allegedly betraying OpenAI's non-profit mission.
Musk also launched his own AI venture, xAI, which has struggled to match OpenAI's success despite raising $6 billion in funding and securing partnerships in the Gulf region.
Project details
Stargate UAE project and Musk's previous frustration
Under the Stargate UAE project, G42 and its partners will fund the development of a massive data complex in Abu Dhabi while committing an equivalent investment to US-based AI facilities.
The first phase (200MW) of this arrangement is said to go live next year.
Musk's annoyance with the OpenAI and UAE deal mirrors his earlier frustration when Trump and Altman unveiled the original Stargate project in the US earlier this year.