P. 05  ·  Nov 4, 2026  ·  3 min read

Abu Dhabi signs AI deals with OpenAI for government, oil and investing

From food permits to oil fields, a Gulf government is giving AI real work.

Abu Dhabi wants AI built into its government

On Monday, Abu Dhabi's Crown Prince, Sheikh Khaled, met Sam Altman, who runs OpenAI, the maker of ChatGPT. Afterward the Crown Prince watched four agreements get signed between Abu Dhabi organizations and OpenAI. They cover a government project, an oil company, an investment fund and an AI company. No one has published a price for any of them. Abu Dhabi says it wants to be the first government in the world with AI built into how it works. The easiest place to see what that means is a permit office.

A rulebook a computer can read

Abu Dhabi calls the project Machine-Readable Government. It writes a set of its rules in a form that AI can read. A rule like "imported food needs a health certificate" becomes one clear line, not a page of legal text. Then AI helps officials check applications against those rules. Picture a checklist where software does the ticking, and each tick links to its rule. Abu Dhabi says officials stay in charge and answer for every final decision. The first test is already live: the emirate's food safety authority uses it to check permits and certificates for food imports.

One commentator thinks this deal got the least attention and may matter most. If rules become something you can search, he says, following them stops being a matter of interpretation. Today two officials can read one rule and disagree. The next deal is about oil.

“I think the food permit pilot will tell us more about AI in government than any of the big announcements.”

An oil company hands AI its field plans

The energy deal involves ADNOC, Abu Dhabi's state-owned oil company. It signed with OpenAI and with G42, an Abu Dhabi AI company. ADNOC says it is the first energy company to use OpenAI Frontier. Frontier helps companies build AI agents, programs that do tasks on their own.

ADNOC plans two first uses. The first is field planning, which means deciding where and how to drill. Today the rock underground, the equipment above it and the costs are studied separately. ADNOC wants AI to weigh them together, as one decision, and says a plan could take hours instead of months.

The second is working out what the oil is worth and when to sell it, even while it is still in the ground. AI agents would follow each barrel to the sale and keep forecasting prices. ADNOC says human experts will oversee the big decisions.

Why would an AI company want an oil partner? Altman gave one answer at an oil and gas conference in Abu Dhabi. He said the AI industry has long talked about what it needs from energy, and "now I think we can repay the favor." The favor, as I read it, is AI helping energy companies work better. Next, who is on each side of these deals?

Abu Dhabi on both sides of the table

Two deals remain. Mubadala, Abu Dhabi's state-owned investment fund, will use OpenAI models to study investments and judge risk. Separately, OpenAI signed a five-year deal with Inception42, a G42 unit that builds AI tools for governments and big companies. Now follow the money. MGX, an investment firm founded by Mubadala and G42, helped lead OpenAI's funding round of $122 billion. G42 is building Stargate UAE, the Abu Dhabi data center that OpenAI will use. One commentator sums it up: the same Abu Dhabi money shows up as investor (MGX), data center host (G42) and customer (ADNOC and Mubadala). He says OpenAI's reasons are not mainly revenue: he guesses the four deals bring in tens of millions of dollars a year, and calls that his own estimate. A label like "world's first AI-native government" also helps OpenAI sell to other countries. So which of these deals can we actually judge?

Where the first answer will come from

Only the government deal is already at work, the same commentator says. He adds that it is the only one where a year should be enough to judge the result. I agree. The other deals run inside a company or a fund. This one meets people who simply want a permit and a decision. Whether officials really keep the final say, as Abu Dhabi promises, will show up there first.

I will also watch whether the permit checks spread beyond food. If they do, officials trust the machine. If they do not, that tells me something too.

Nov 4, 2026  ·  Sketchbook, p. 05

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