The Rise of a New AI Superpower

Abu Dhabi’s artificial intelligence sector is growing at breakneck speed, a rapid expansion that officials say is reconfiguring the emirate as a major global centre for AI.

New figures from the Abu Dhabi Chamber of Commerce and Industry show the emirate counted 673 AI companies between June 2023 and June 2024, a stunning 61% rise in a single year.

That growth has made Abu Dhabi the fastest-growing AI cluster in the Middle East and North Africa. But in a world dominated by a handful of established tech capitals, can the emirate truly compete with the giants?

The emirate’s push is a deliberate effort to exploit the weaknesses of the incumbents. A cornerstone of its strategy is the Mohamed bin Zayed University of Artificial Intelligence (MBZUAI), the world’s first graduate-level university dedicated solely to AI, designed to cultivate and attract a deep talent pool.

By combining this focus on talent with massive government backing and a significantly lower cost of doing business, Abu Dhabi is positioning itself as a natural magnet for founders and investors looking for an alternative to the overheated markets of the U.S. and Europe.

The New AI Cities Nurturing Cutting Edge Tech

The new report maps out a distinct geography of artificial intelligence startups that has emerged globally, with a relatively small set of international cities concentrating the capital, talent, research institutions and corporate partners that early-stage AI companies need to scale.

While AI innovation is increasingly distributed, a handful of urban ecosystems continue to lead the arms race to have the most advanced teams.

Each hub has a unique blend of strengths covering everything from venture funding, deep research, access to data and specialized hardware or policy support, making them natural magnets for founders and investors.

Where Are the Biggest Global Hubs for AI

Analysts at StartupBlink have broken down exactly where AI is flocking as the Wild West rush for capital and customers continues its scorching pace.

The San Francisco Bay Area remains the preeminent hub, powered by dense venture capital networks, leading universities, major cloud and chip providers, and a culture that tolerates risk and rapid iteration.

As the long-time epicenter of the tech industry, startups in the Bay continue to benefit from proximity to both deep-pocketed investors and large tech firms that are major customers or acquirers.

Data shows that New York City complements the West Coast with breadth in finance, media, healthcare and advertising create immediate vertical markets for applied AI, while strong seed and growth funding rounds keep a steady pipeline of capital.

Across the pond, London retains its role as Europe’s AI capital, combining talent from top universities, generous government-backed AI initiatives, and a favorable time zone for transatlantic deals.

However, nowhere has been more successful and rapidly scaling and aggressively pushing domestic policy that supports tech than China.

China’s AI scene is anchored by Beijing and Shenzhen. Heavily backed by the Chinese state, Beijing is a research and talent powerhouse with deep ties to major AI labs and state-backed industrial programs. Tech analysts follow Shenzhen closely because it excels at rapid hardware prototyping and commercializing AI-powered devices.

Both cities benefit from major support from a strong, centralized Chinese government that is significantly invested in pushing massive domestic markets and integrated supply chains.

The Middle East Makes a Play for AI Dominance

Tel Aviv remains a startup factory, offering highly experienced technical founders, a specialized cybersecurity and data-science talent pool, and a strong exit market. Beyond the top tier, a host of specialized hubs are carving out their own niches. In North America, Toronto and Montreal are research powerhouses with initiatives that feed startups with top-tier machine-learning talent and international partnerships, while Boston leverages its universities to lead in biotech AI.

Paris and Berlin provide growing European ecosystems with robust public research funding and increasingly active VC communities.

In India, Bengaluru continues to expand as the nation’s engineering and product-development center, offering cost-effective talent and a large domestic market for AI services.

Singapore is positioning itself as a regulatory- and infrastructure-friendly gateway to Southeast Asia, actively courting AI companies with data-governance frameworks and regional connectivity. Seattle, with its cloud and retail giants, remains an influential node for enterprise AI.

The Weakness of the Giants

Even the biggest AI hubs have real weaknesses. The Bay Area is weighed down by sky-high costs and cut-throat competition for engineers, while a softer VC market makes it harder for later-stage startups to scale. New York faces a persistent hiring gap as top researchers chase the pay and resources of Google and Meta, and its office rents and salaries push early-stage burn rates to the brink.

Those pressures are creating an opening for newer, more flexible markets, like Abu Dhabi, to thrive. In an era of political division and economic uncertainty, the biggest “moonshot” may not be a new algorithm but a new city. And in the global race for AI, Abu Dhabi is making a compelling case that its moment has arrived.