The United Arab Emirates (UAE) has entered the global AI race with the launch of its low-cost reasoning model, K2 Think, developed by the Mohamed bin Zayed University of Artificial Intelligence (MBZUAI) in Abu Dhabi. The new entrant is challenging OpenAI and China’s DeepSeek. It shows that innovation does not always require massive budgets or hardware resources.
What’s Happening & Why This Matters
In January, DeepSeek, a China-based research lab, shook the AI industry by closing the performance gap with OpenAI’s ChatGPT. They achieved this while operating on a fraction of its budget and energy. Now, MBZUAI hopes to take that momentum further with K2 Think. This system is designed to be smaller and more efficient, yet capable of competing with the world’s most advanced AI models.
Unlike traditional models, K2 Think isn’t only a static release. Hector Liu, Director of MBZUAI’s Institute of Foundation Models, told CNBC:
“What was special about our model is we treat it more like a system than just a model. So, unlike a regular open-source model where we can just release the model, we actually deploy the model and see how we can improve it over time.”
Their approach allows MBZUAI to continuously refine the model’s reasoning and performance based on real-world usage.
Cutting-Edge Performance and Open Access
K2 Think was built using Alibaba’s Qwen 2.5 large language model and operates on high-powered chips provided by Cerebras, a leader in AI hardware. According to MBZUAI, the model can process 2,000 tokens per second, roughly equivalent to 1,500 words. The capability makes it one of the fastest reasoning systems available today.
The model employs a novel combination of long-chain-of-thought supervised fine-tuning and reinforcement learning with verifiable rewards. Its structure strengthens logical depth and ensures high accuracy when solving complex problems.

Similar to DeepSeek’s R1 model, K2 Think is open source, with its training data and weights made publicly available. MBZUAI emphasises that transparency allows researchers worldwide to study, reproduce, and extend the model. Being open source fosters collaboration and accelerates progress in reasoning AI.
Global AI Competition Intensifies
The United States and China currently dominate the AI space, via companies OpenAI, Google, Anthropic, and Baidu, leading the charge. However, MBZUAI’s entry opens doors for other nations who are ready to compete. The UAE’s initiative represents burgeoning public–private partnerships driving AI innovation outside the traditional powerhouses.
MBZUAI stated,
“K2 Think is a defining moment for AI in the UAE. It reflects how open innovation and close public–private partnerships can position Abu Dhabi as a global leader in AI, demonstrating that the future of reasoning will be shaped not only by size, but by ingenuity and collaboration.”
By offering a cost-effective alternative to the massive models developed in the U.S. and China, the UAE is carving a niche that disrupts the known AI heirarchy. K2 Think drives high-level reasoning AI accessible to governments, startups, and academic institutions worldwide. K2 Think believes its availability can fuel innovation on a global scale.
TF Summary: What’s Next
The launch of K2 Think is a serious achievement for the UAE and the AI community. Concentrating on efficiency, transparency, and collaboration, MBZUAI introduced a model that vies with the world’s top players. It contests the notion that only the largest models can lead innovation. As K2 Think gains traction, it may inspire other countries to develop similar open-source, low-cost alternatives. More entries further decentralises the AI race.
MY FORECAST: The competition between OpenAI, DeepSeek, and now MBZUAI, implies that the AI marketplace is not dictated by size alone. Instead, the real power is in collaborative innovation and sustainable growth.
— Text-to-Speech (TTS) provided by gspeech