Elon Musk reportedly tried to block OpenAI's big AI deal in the UAE

Elon Musk has reportedly tried to insert xAI into a high-profile AI deal between OpenAI and the UAE, warning that the project might hit a wall in Washington without him.

According to The Wall Street Journal, Musk called officials at G42—OpenAI’s partner in Abu Dhabi—and argued that U.S. approval could be tricky unless xAI joined the venture.

OpenAI announced a major agreement with G42 on May 22. The plan is to build a massive 5GW data center cluster in Abu Dhabi, under a global infrastructure push called Stargate. It’s backed by the UAE’s sovereign wealth fund and marks OpenAI’s first overseas expansion of this scale.

The scope is huge—about 26 square kilometers, with power demands on par with five nuclear plants. Unsurprisingly, it’s drawing attention from across the AI industry. Despite Musk’s objections, the deal moved forward.

Sources say Musk got upset after hearing that OpenAI CEO Sam Altman would be joining President Trump on a Middle East tour, just as the UAE project was gaining steam. He then asked to join the trip and eventually did.

Behind the scenes, Musk raised fairness concerns about the deal, prompting Trump’s team to review the terms. But the contract wasn’t changed. One official said part of the job became managing Musk’s reaction.

Trump and his AI adviser, David Sacks, reportedly wanted the deal finalized before the tour ended.

Musk, who co-founded OpenAI but later split over leadership issues, has remained a vocal critic. He launched xAI last year as a direct competitor and was reportedly seen as a strong contender for the same UAE project before OpenAI moved ahead.