Trump Administration Clears Sale Of Nvidia AI Chips To UAE And Saudi Arabia
The United States has approved the export of some of Nvidia’s most advanced artificial intelligence chips to the United Arab Emirates and Saudi Arabia, granting the Gulf nations access to hardware capable of training and running high-performance AI models.
The move allows each country to acquire the equivalent of up to 35,000 units of Nvidia’s Blackwell GB300 processors, reflecting a major moment in their pursuit of AI leadership.
Which Companies Will Receive The Chips And Under What Conditions
The Commerce Department confirmed that Abu Dhabi-based G42 and Saudi-backed Humain will receive the chips, subject to rigorous security and reporting requirements.
Officials stressed that these measures are designed to prevent technology transfer to high-risk countries, particularly China.
The approvals come after months of negotiations and bilateral talks focused on economic collaboration, cybersecurity safeguards, and governance measures for emerging technologies.
G42 had previously distanced itself from Chinese technology by ceasing the use of Huawei equipment and winding down ties with Chinese firms, a decision that enabled a $1.5 billion investment from Microsoft.
Humain similarly pledged not to purchase Huawei gear, aligning with U.S. expectations for secure AI development.
How The Gulf Nations Are Expanding Their AI Ambitions
Both the UAE and Saudi Arabia are racing to develop AI industries capable of global influence.
G42 is investing in massive data centres, cloud infrastructure, and national projects ranging from genomics research to space technology.
The company is also partnering with international tech leaders, including OpenAI, Oracle, Cisco, Nvidia, and SoftBank Group, as part of the 1GW Stargate AI compute cluster initiative.
Saudi Arabia’s Humain is pursuing a comparable strategy, planning “AI factories” equipped with hundreds of thousands of GPUs to power projects in healthcare, education, freight, transportation, and government operations.
Humain also announced plans to establish a 500-megawatt data centre in partnership with xAI and Nvidia, alongside agreements with AMD, Cisco, Adobe, and Qualcomm to support AI infrastructure and content creation in Arabic.
Why The U.S. Decided To Approve The Exports
Inside Washington, the approvals sparked debate.
Some officials view the move as a strategic response to China’s growing presence in the Middle East, aiming to anchor the region’s AI ecosystem within American technological infrastructure.
While concerns remain that advanced chips could be misused or indirectly accessed by adversaries, the administration believes strict operational rules and continuous oversight will mitigate these risks.
President Trump discussed chip access with both countries during visits and follow-up talks, using the approvals to encourage investment in the United States.
The UAE has committed to spending $1.4 trillion in U.S. projects, while Saudi Arabia has increased its pledged investment from $600 billion to $1 trillion.
How AI Chips Shape Diplomatic And Economic Ties
The export approval marks a shift in U.S. policy, lifting previous restrictions set under the Biden administration that capped AI chip sales to foreign firms to limit the risk of diversion to China.
For Washington, the decision serves as both a tool of influence and a safeguard for technological leadership.
For the Gulf nations, it provides the computational capacity to accelerate AI projects, attract global partners, and diversify their economies.
Yousef Al Otaiba, UAE Minister of State and ambassador to the U.S., said:
“The White House’s decision to authorise US chip exports to the UAE marks another milestone in the trusted and enduring partnership between our two nations. The authorisation follows sustained engagement between both governments and reflects the confidence that underpins our collaboration in advanced technology and national security.”
Peng Xiao, CEO of G42, added:
“What we build in the UAE, we will continue to match in the US, maintaining symmetry and trust at every layer.”
What Comes Next For Nvidia And The Gulf States
For Nvidia, the approvals open access to two of the fastest-growing AI markets in the world.
Both G42 and Humain are expected to request additional chips as they expand data centres, AI labs, and large-scale infrastructure projects.
The Gulf nations’ investments, partnerships, and technology ambitions indicate a long-term strategy to position themselves as global leaders in artificial intelligence, while reinforcing economic and strategic ties with the United States.
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