Davos: G42 CEO Peng Xiao on UAE Chip Imports, AI Developments

Watch on YouTube ↗  |  January 25, 2026 at 03:01  |  11:16  |  Bloomberg Markets
Speakers
Peng Xiao — CEO, G42

Summary

G42 CEO Peng Xiao speaks with Bloomberg's Joumanna Bercetche at Davos about AI as a national priority, the UAE's AI leadership, and G42's infrastructure buildout. He gives updates on the Stargate data-center cluster, Nvidia chip shipments, Microsoft partnership, and long-term Africa/Kenya plans. He also addresses concerns about AI capex, power use, jobs, and global competition, arguing that US allies should double down rather than pause.

  • AI has become a utility and top national priority for governments worldwide.
  • UAE is positioning itself as an AI hub with cheap energy, connectivity, and a 5 GW campus.
  • G42 expects first advanced Nvidia chips to ship to UAE in coming months.
  • Stargate data-center cluster plans first 200 MW online soon, scaling 200-500 MW per quarter.
  • Inference demand far outstrips supply, while training remains concentrated among few large firms.
  • Microsoft partnership lets Microsoft serve customers from G42 infrastructure; Kenya/Africa bets continue.
  • Peng Xiao dismisses regional AI rivalry and argues US/allied AI should not pause.
Ideas
Peng Xiao CEO, G42 0:40
AI is a must; double down.
Peng Xiao argues AI is no longer a nice-to-have but a physical utility that governments and populations are already consuming, so sovereigns must put AI at the top of national priorities and build independent infrastructure. He acknowledges concerns about jobs, electricity, and a global race, but says pausing in the US/allied ecosystem would be a mistake because other nations will continue developing and could take market share; he says this is the year to double down on AI.
AI-SECTOR HIGH
Peng Xiao CEO, G42 1:46
UAE has advantaged AI infrastructure position.
Peng Xiao says the UAE has been leading in AI for more than five years, with a federal AI ministry, an AI university, and global partnerships. He cites cheap reliable energy and grid connectivity from Abu Dhabi that can serve almost 4 billion people with low latency, making the UAE a strategically advantaged hub for AI infrastructure and global AI services.
UAE HIGH
Peng Xiao CEO, G42 2:39
AI infrastructure buildout remains a long-term need.
G42 and the UAE are building the largest AI campus, including a planned 1 GW Stargate data-center cluster with the first 200 MW coming online in months and plans to add 200-500 MW per quarter toward 5 GW. Peng Xiao frames AI infrastructure as a real physical utility that the world is already consuming, supporting continued long-term buildout.
AIQ HIGH
Peng Xiao CEO, G42 4:24
Nvidia chips head to UAE buildout.
G42 expects the first batch of the most advanced AI chips to be shipped to the UAE in the next couple of months, mostly Nvidia chips, after receiving US export licenses. This is a concrete validation that Nvidia remains a key chip supplier for the UAE's 5 GW AI buildout and that export approvals are progressing.
NVDA HIGH
Peng Xiao CEO, G42 6:42
US allies should double down on AI.
He warns that if the US, its ecosystem, or US allies pause AI development, other nations will not stop and AI diffusion will occur, potentially allowing rival technology stacks to grab market share first. He therefore favors doubling down on US/allied AI development this year despite near-term social, power, and ROI concerns.
US AI ecosystem MED
Peng Xiao CEO, G42 10:00
Microsoft gains capacity via G42 partnership.
Microsoft is G42's key partner in the UAE AI infrastructure buildout. Peng Xiao says Microsoft can now serve every one of its customers from G42 alone, and the partnership extends into the global South and Kenya, giving Microsoft additional AI cloud capacity, connectivity, and distribution reach.
MSFT MED
Peng Xiao CEO, G42 10:27
Africa is a long-term infrastructure bet.
G42 is making long-term bets in Africa despite near-term challenges around local conditions and commercialising AI infrastructure. The Kenya project is still progressing, and Peng Xiao views Africa as a frontier market where G42 will work with multiple nations over the long term.
AFK MED
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This Bloomberg Markets video, published January 25, 2026, features Peng Xiao discussing AI-SECTOR, UAE, AIQ, NVDA, US AI ecosystem, MSFT, AFK. 7 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Peng Xiao  · Tickers: AI-SECTOR, UAE, AIQ, NVDA, US AI ecosystem, MSFT, AFK