The UAE and US will invest more in artificial intelligence as part of a strategic partnership, the UAE’s state minister for AI Omar Sultan Al Olama said on Tuesday. The UAE, led by government-backed firm G42, is striving to become a global leader in AI, invested heavily in it to help the Gulf nation diversify away from oil. The stakes have risen as neighbouring Saudi Arabia has begun pitching itself as a prospective hub for AI activity outside the US. “In terms of our investments, since the US is now considering the UAE as a strategic partner, and the UAE is reciprocating that by considering the US as a strategic partner, you will see more deals naturally,” Al Olama told Reuters on the sidelines of an event in Dubai. Microsoft is investing $1.5bn in G42, the two companies announced last month, giving the US giant a minority stake and a board seat and allowing the two to deepen ties. As part of the deal, which the two companies said was backed by assurances to the US and UAE governments over security, G42 would use Microsoft cloud services to run its AI applications. UAE’s AI pushAl Olama said a diversified energy mix, including nuclear energy, was key for attracting AI investment to the Gulf country. “We will have the ability to expand our energy infrastructure based on the need of the data centres,” the minister said. This includes discussions about small modular nuclear reactors but there were no concrete plans yet, he said.