Microsoft is investing $15.2 billion in the world’s AI hotspot — Why that’s great news for NVIDIA and its specialized GPUs

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Microsoft recently revealed information about its AI partnerships with the United Arab Emirates, and it appears NVIDIA is poised to benefit the most from these developments.

Microsoft announced on November 3, 2025, that it has invested over $7.3 billion in the UAE since beginning a major investment plan in 2023. The company expects to reach this milestone by the end of the current year.

Here’s a closer look at the spending: $1.5 billion went towards an investment in G42, an AI company in the UAE. About $4.6 billion was used for building AI datacenters in the UAE, while another $1.2 billion covered day-to-day operations and the costs of producing goods.

Microsoft is investing a total of $15.2 billion in the UAE. While $7.3 billion is already committed through the end of 2025, the company plans to invest an additional $7.9 billion from 2026 to 2029.

Microsoft is investing an additional $5.5 billion to expand its AI cloud infrastructure, including building more data centers. They will share more specifics about this expansion this week in Abu Dhabi. On top of that, the company will spend another $2.4 billion on everyday operating costs and sales expenses.

Microsoft plans to invest around $15.2 billion in developing artificial intelligence in the UAE by 2029, if the investment proceeds as expected.

The ongoing battle involving AI, GPUs, and export licenses

NVIDIA stands to gain significantly from this investment trend. The company is the current leader in producing the specialized GPUs needed for AI datacenters, and this demand is driving their success.

Microsoft highlights that it was among a limited number of companies granted permission by the Biden administration to export GPUs designed for artificial intelligence to the United Arab Emirates.

Microsoft states that export licenses granted during the Biden administration enabled them to assemble a significant collection of AI GPUs in the UAE – roughly the same computing power as 21,500 NVIDIA A100 GPUs. This collection includes a mix of A100, H100, and H200 chips.

Microsoft claims it was the first to obtain the required export licenses from the UAE during the Trump administration. The approval for this deal came in September 2025, and Microsoft states it was granted due to new and stricter security measures.

This likely alludes to the difficulties NVIDIA and AMD have faced in getting permission to export their graphics cards to countries like China. The US government has been concerned that this advanced technology could be used for military applications or other harmful activities by foreign entities.

Microsoft has received new export permission to ship technology equivalent to 60,400 high-end A100 chips. This shipment will now include NVIDIA’s newer and more powerful GB300 GPUs, according to the company.

Speaking to CNBC at the ADIPEC conference in Abu Dhabi, Microsoft’s President Brad Smith said:

We deeply appreciate the efforts of Commerce Secretary Howard Lutnick in securing the export licenses we needed. This success also builds on strong relationships we’ve had with former Secretary Marco Rubio during his time in the Senate, and with Democrats as well. We understand that effective governance requires cooperation from both parties, and we always keep that in mind.

Microsoft President Brad Smith

These chips help users access powerful AI technology from companies like OpenAI, Anthropic, and Microsoft, as well as open-source options. Microsoft explains that this also supports AI-powered apps, including its own Copilot, developed by companies around the world.

The UAE is quickly becoming a leading country for artificial intelligence. A recent report from Microsoft shows the UAE has the highest rate of AI use per person globally, with nearly 60% of people using generative AI. Singapore is close behind at around 59%, while the US has a usage rate of 20-30%.

News of a major Microsoft deal in the UAE led to a 2.17% increase in NVIDIA’s stock price on Monday. Meanwhile, Microsoft’s stock dipped slightly, falling by 0.17% during the same day.

FAQ

How much is Microsoft investing in the UAE?

Microsoft is investing a total of $15.2 billion by 2029. They’ve already invested $7.3 billion as of the end of 2025 and plan to invest another $7.9 billion over the next few years.

Where is the money going?

The investment covers $1.5 billion in equity for G42, an AI company based in the UAE, $4.6 billion for building AI data centers, and additional billions for expanding operations locally.

Why is NVIDIA benefiting?

Microsoft has permission to ship a large number – tens of thousands – of powerful NVIDIA GPUs, including the A100, H100, H200, and the newest GB300, to the United Arab Emirates. This reinforces NVIDIA’s position as a key provider of the technology that powers AI datacenters.

What are NVIDIA A100, H100, H200, and B300 GPUs?

NVIDIA offers several GPUs created for artificial intelligence tasks, including the A100, H100, H200, and B300.

The A100 was the starting point, and each subsequent version improved upon it. The H100 offered a major performance increase over the A100, while the H200 is simply a more powerful version of the H100.

The H100 and H200 are based on NVIDIA’s Hopper architecture, but the new B300 models now use the Blackwell architecture. The B300 offers a significant boost in performance and memory compared to previous generations.

What are export licenses?

The U.S. government requires permits, called export licenses, to allow companies to sell certain products – including powerful GPUs used for artificial intelligence – to other countries. These licenses are intended to protect national security and support U.S. foreign policy goals, but they can also be used as a bargaining tool. For example, NVIDIA and AMD recently agreed to give the U.S. government 15% of their AI GPU profits in China in exchange for these necessary permits.

Is NVIDIA the most valuable company in the world?

NVIDIA remains the market leader, recently reaching a valuation of $5.036 trillion – a milestone it achieved just last week.

Microsoft is currently valued at $3.842 trillion, making it the third most valuable company. Apple is slightly ahead, with a valuation of $3.975 trillion.

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2025-11-04 17:41