Musk Unsuccessfully Tried to Block OpenAI's Major AI Project in the Middle East
Elon Musk attempted to derail a major artificial intelligence business deal in the Middle East involving OpenAI, Oracle, Nvidia, Cisco, and the Emirati company G42. The project, known as Stargate UAE, aims to build one of the world's largest AI data centers in Abu Dhabi. However, Musk's attempted intervention proved unsuccessful and underscored his growing rivalry with Sam Altman, CEO of OpenAI.
According to sources, Musk learned of the deal shortly before U.S. President Donald Trump's trip to the Persian Gulf region in mid-May 2025. When he discovered that Sam Altman would be part of the trip and that a major deal with G42 was being finalized, Musk became angry. He subsequently demanded that his own AI company, xAI, be included in the project, reportedly warning G42 officials that the deal would not receive Trump's support unless xAI was part of it. Sources say Musk's objections stemmed from both business interests and his rivalry with Sam Altman, with whom he co-founded OpenAI in 2015 before leaving the company in 2018 due to disagreements. Despite Musk's efforts to "pause" or derail the deal, his demands proved unsuccessful. The consortium led by OpenAI and G42 proceeded with the announcement, and Musk's xAI was not included as a participant in the deal. The U.S. government and Trump's team reviewed the deal and decided to move forward, while attempting to manage Musk's objections behind the scenes so that the deal could be unveiled during Trump's trip to the Middle East. Stargate UAE is a high-profile initiative to expand AI infrastructure in the region, involving major U.S. technology companies, and is viewed as a strategic move for both the UAE's economic diversification and the global AI industry.
Musk's intervention highlights the growing rivalry between him and Sam Altman, as well as the high stakes surrounding AI infrastructure and influence in geopolitically significant regions. Although Musk attempted to use political influence to advance his business interests, his failure demonstrates the limits of his ability to shape major international technology deals when he is not directly involved in the original negotiations.
