G42, a technology group backed by Abu Dhabi, is seeking to diversify its chip suppliers for a planned UAE-US AI campus, according to a Semafor report.

The company is in talks with US tech firms such as Amazon Web Services, Microsoft, Meta, and Elon Musk’s xAI to become tenants at the new data center.

Google is said to be the furthest along in negotiations.

G42 is also considering chipmakers AMD, Cerebras Systems, and Qualcomm to provide computing capacity for the campus.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ Diversification beyond dominant suppliers becomes strategic priority in AI infrastructure

G42’s move to include AMD, Cerebras Systems, and Qualcomm alongside or instead of Nvidia for their AI campus reflects growing concerns about supply chain concentration in critical technologies1.

This diversification strategy emerges as semiconductor supply chains face increasing scrutiny, particularly as the U.S. semiconductor industry’s global manufacturing share declined from 37% in 1990 to just 12% by 20202.

The pattern suggests that large infrastructure players are seeking to reduce dependency on single suppliers, even market leaders like Nvidia, to ensure more resilient operations.

Major technology companies including Google, which is reportedly furthest along in negotiations to become a tenant at the campus, are likely evaluating how supplier diversity affects their own operational risk1.

Recent G42 developments