Elon Musk reportedly tried to dam a serious synthetic intelligence deal between OpenAI and the United Arab Emirates (UAE) except his firm, xAI, was included, in line with a brand new report by The Wall Road Journal.
The deal, introduced final week, includes OpenAI and a bunch of US tech giants, together with Oracle, NVIDIA, Cisco, and SoftBank, constructing one of many world’s largest AI knowledge facilities in Abu Dhabi.
OpenAI described it as “our first OpenAI for Nations partnership [that] expands international AI infrastructure and entry, in coordination with the U.S. authorities.” The UAE, desperate to diversify its economic system past oil, is closely investing in AI infrastructure. As a part of the settlement, G42 will fund the development of the Abu Dhabi website and a equally sized challenge within the US.
However behind the scenes, Musk allegedly pushed to derail the settlement, warning UAE officers that President Donald Trump wouldn’t assist it except xAI was a part of the challenge.
Musk’s sudden Center East journey and warning to UAE officers
Musk discovered simply earlier than Trump’s mid-Could tour of Gulf international locations that OpenAI CEO Sam Altman was becoming a member of the journey and {that a} main AI deal was within the works. In response to White Home officers, Musk was livid and determined to hitch the journey himself, showing alongside Trump in Saudi Arabia.
Throughout a name with officers from G42, Musk reportedly warned that the deal had “no likelihood” of Trump’s approval except xAI was included.
Regardless of Musk’s objections, Trump and US officers reviewed the phrases and determined to maneuver ahead. White Home aides even mentioned the best way to “calm Musk down” so the deal could possibly be introduced earlier than the top of Trump’s Center East journey, in line with the Journal.
A deepening rift between Musk and Altman
Altman and Musk co-founded OpenAI in 2015, however Musk left in 2018 after inside disagreements. Since then, the rivalry between Musk and Altman has turn out to be private and public; some examples embrace the next.
In 2023, Musk launched xAI to compete with OpenAI, nevertheless it has not but reached the identical degree of economic success.
Then, Musk sued OpenAI, accusing Altman of betraying the corporate’s nonprofit mission. OpenAI filed a countersuit in opposition to Musk.
Musk’s frustration over being sidelined was additionally evident in January 2025 through the announcement of Stargate US, a home $500 billion AI challenge led by OpenAI and backed by the Trump administration. In response to the Journal, Musk was blindsided and took to X, his social platform, to criticize that deal as effectively.
In February 2025, Musk and a consortium of buyers proposed a $97.4 billion bid to accumulate management of OpenAI, which was rejected by the corporate’s board of administrators.
Political ties and energy strikes
Musk’s affect in Republican circles is important; he has donated about $300 million to assist re-elect Donald Trump and was an in depth adviser through the marketing campaign. He not too long ago stepped down from the White Home’s Division of Authorities Effectivity activity drive to deal with his firms: X, Tesla, xAI, SpaceX.
Regardless of Musk’s political weight, Trump and his aides in the end selected to maneuver ahead with the Stargate UAE deal with out together with xAI. A senior White Home official instructed the Journal that Musk “raised issues concerning the deal and relayed his issues about equity for all AI firms.”
White Home press secretary Karoline Leavitt praised the ultimate deal, calling it “one other nice deal for the American individuals, due to President Trump and his distinctive staff.”