diff --git a/src/CMake/utilities.cmake b/src/CMake/utilities.cmake
index a1fc771664a..c5d14d3a98f 100644
--- a/src/CMake/utilities.cmake
+++ b/src/CMake/utilities.cmake
@@ -45,3 +45,20 @@ function(xrt_include filename)
     include(${ARGV})
   endif()
 endfunction()
+
+# xrt_add_subdirectory_diable_install_target subdir
+#
+# This function disables the install target for a subdirectory prior
+# to calling add_subdirectory.  This is a work-around for a missing
+# cmake feature.  While CMAKE_SKIP_INSTALL_RULES is key and prevents
+# the CMake from from creating subdir/cmake_install.cmake, it
+# unfortunately doesn't prevent CMake from still wanting to include
+# subdir/cmake_install.cmake.  This function just creates an empty
+# subdir/cmake_install.cmake file.
+function(xrt_add_subdirectory_disable_install_target subdir)
+  set(CMAKE_SKIP_INSTALL_RULES TRUE)
+  file(MAKE_DIRECTORY ${CMAKE_CURRENT_BINARY_DIR}/${subdir})
+  file(TOUCH ${CMAKE_CURRENT_BINARY_DIR}/${subdir}/cmake_install.cmake)
+  xrt_add_subdirectory(${ARGV})
+  set(CMAKE_SKIP_INSTALL_RULES FALSE)
+endfunction()
diff --git a/src/runtime_src/CMakeLists.txt b/src/runtime_src/CMakeLists.txt
index 46e3647cb6e..8ea050a58b0 100644
--- a/src/runtime_src/CMakeLists.txt
+++ b/src/runtime_src/CMakeLists.txt
@@ -77,9 +77,9 @@ else()
   endif()
 
   if (XDP_CLIENT_BUILD_CMAKE STREQUAL "yes")
-    set(AIERT_DIR ${CMAKE_CURRENT_BINARY_DIR}/aie-rt)
+    set(AIERT_DIR ${CMAKE_CURRENT_BINARY_DIR}/aie-rt/driver/src)
     set(XAIENGINE_BUILD_SHARED OFF)
-    xrt_add_subdirectory(aie-rt/driver/src aie-rt)
+    xrt_add_subdirectory_disable_install_target(aie-rt/driver/src)
     # This enables aiebu submodule use aie-rt from higher level
     set(AIEBU_AIE_RT_BIN_DIR ${AIERT_DIR})
     set(AIEBU_AIE_RT_HEADER_DIR ${AIERT_DIR}/include)
diff --git a/src/runtime_src/aie-rt b/src/runtime_src/aie-rt
index 3640b761ded..760ab16bc44 160000
--- a/src/runtime_src/aie-rt
+++ b/src/runtime_src/aie-rt
@@ -1 +1 @@
-Subproject commit 3640b761ded1619ac06478a0985bb4a2fb2b3e26
+Subproject commit 760ab16bc4479c4157128fcf3bcece895bc36a96
diff --git a/src/runtime_src/core/common/CMakeLists.txt b/src/runtime_src/core/common/CMakeLists.txt
index 48da97e2dc0..02425a4a531 100644
--- a/src/runtime_src/core/common/CMakeLists.txt
+++ b/src/runtime_src/core/common/CMakeLists.txt
@@ -8,7 +8,7 @@ add_subdirectory(runner)
 if(CMAKE_VERSION VERSION_LESS "3.18.0")
   message(WARNING "CMake version is less than 3.18.0, build of submodule aiebu disabled")
 elseif (${XRT_NATIVE_BUILD} STREQUAL "yes")
-  add_subdirectory(aiebu)
+  xrt_add_subdirectory(aiebu)
 else()
   message(WARNING "Edge device, build of submodule aiebu disabled")
 endif()
diff --git a/src/runtime_src/core/common/aiebu b/src/runtime_src/core/common/aiebu
index 89f332a2d7f..a322ef143bc 160000
--- a/src/runtime_src/core/common/aiebu
+++ b/src/runtime_src/core/common/aiebu
@@ -1 +1 @@
-Subproject commit 89f332a2d7f33c08a471fe560d87859edd7e4576
+Subproject commit a322ef143bc18bd56396fd22c1309cf161aea9f2