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India·Technology·Diplomacy

India and UAE sign AI computing deal to reduce reliance on US cloud giants

Tuesday, 2 June 2026, 06:40 · 1 min read

India has partnered with Abu Dhabi-based technology conglomerate G42 (backed by the UAE sovereign wealth fund Mubadala) to deploy 64 Cerebras-powered supercomputers on Indian soil, offering the country an alternative to renting AI computing capacity from Amazon, Microsoft, and Google. The agreement, signed on May 15, makes India the first country to join G42's so-called Intelligence Grid — a global network of government-facing AI facilities — with all data to be managed under Indian governance rules through a collaboration with India's Centre for Development of Advanced Computing. The deal is significant because it gives India a domestically hosted, non-US AI infrastructure option alongside the roughly $45 billion already committed by American tech firms, though analysts note G42 will face a steep challenge matching the integrated software ecosystems those companies provide.

Sources
Rest of WorldIndia’s AI deal with the UAE challenges U.S. cloud dominance ↗︎
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