OpenAI explores partnership in Abu Dhabi to develop a UAE-focused version of ChatGPT

The OpenAI is in discussions with Abu Dhabi–based technology group G42 to develop a specialized version of ChatGPT tailored for the United Arab Emirates, according to information reported exclusively by Semafor.

The talks highlight a broader shift in the global artificial intelligence landscape, as governments and corporations increasingly seek localized AI systems that align with national regulations, cultural contexts, and data-sovereignty requirements.

According to the Semafor report, the discussions focus on adapting the model to local language and dialects, regulatory frameworks, and governance standards, rather than deploying a one-size-fits-all global product. Financial terms, timelines, and the final structure of any potential agreement have not been disclosed.

Localized AI and digital sovereignty

The potential OpenAI–G42 collaboration underscores the Middle East’s growing role as a strategic center for AI investment. Countries such as the UAE are positioning artificial intelligence as core national infrastructure, integrating it into long-term economic diversification and digital transformation strategies.

In recent coverage, Bloomberg has emphasized that localization is becoming a defining trend in AI expansion, as regulators worldwide demand greater transparency around training data, deployment, and algorithmic oversight.

Global regulatory pressure intensifies

The negotiations also come amid tightening regulatory scrutiny elsewhere. In Europe, the European Union has stepped up enforcement under the Digital Services Act, urging platforms to curb features deemed potentially addictive. TikTok has been among the companies facing increased regulatory pressure, reinforcing that product design and algorithmic behavior are now central to policy debates.

This evolving regulatory environment adds complexity for AI developers operating across multiple jurisdictions, strengthening the case for market-specific partnerships such as the one under discussion between OpenAI and G42.

Chips, infrastructure, and the broader economic backdrop

At the macro level, the rapid expansion of AI continues to reshape global supply chains. Industry forecasts suggest global semiconductor sales could approach US$1 trillion, driven largely by demand for advanced chips used in AI data centers and high-performance computing. This backdrop highlights why AI is increasingly viewed not merely as software, but as strategic infrastructure with long-term economic and geopolitical implications.

What it signals

While still at an exploratory stage, the talks reported by Semafor point to a next phase of AI growth defined less by blanket global adoption and more by bespoke, jurisdiction-specific implementations.

Disclosure: The information referenced in this article was first reported exclusively by Semafor. This piece provides independent context and analysis based on publicly available reporting.