U.S. is reportedly considering easing export restrictions on Nvidia’s advanced AI chips to the United Arab Emirates (UAE), potentially linked to the UAE’s pledge to invest up to $1.4 trillion in the U.S. over the next decade.
This move underscores the UAE’s strategic efforts to bolster its artificial intelligence (AI) capabilities and infrastructure, aligning with its broader economic diversification goals.
The UAE’s significant investment commitment, announced in March 2025, aims to enhance various sectors within the U.S., including AI infrastructure, semiconductors, energy, and manufacturing. Key components of this investment include a $25 billion initiative in energy infrastructure and data centers by the UAE’s ADQ, in partnership with Energy Capital Partners, and a substantial investment by ADNOC’s international arm, XRG, in Texas’ NextDecade liquefied natural gas export facility.
Central to the UAE’s ambitions is the desire to become a global leader in artificial intelligence. Sheikh Tahnoon bin Zayed Al Nahyan, the UAE’s national security adviser, oversees a vast $1.5 trillion portfolio that includes significant investments in AI through entities like G42 and the MGX fund. These organizations have been instrumental in advancing the UAE’s AI capabilities, including the development of bilingual AI models and the establishment of data centers leveraging U.S. technology.
However, the UAE’s pursuit of advanced AI technology has faced challenges due to U.S. export restrictions on high-performance AI chips, such as Nvidia’s H100 GPUs. These restrictions, initially aimed at curbing technology transfers to China, have also impacted Middle Eastern countries, including the UAE.
In response, the UAE has taken steps to align more closely with U.S. interests. Notably, G42 has reportedly ended its relationship with Chinese tech giant Huawei, a move aimed at assuaging U.S. concerns over potential technology transfers to China.
Furthermore, the U.S. has approved the export of advanced AI chips to a Microsoft-run facility in the UAE, connected to Microsoft’s collaboration with G42. This partnership is part of a U.S. initiative to reduce China’s influence in the UAE’s tech industry and promote U.S. AI technology globally.
As discussions continue, Sheikh Tahnoon is expected to advocate for easier access to cutting-edge semiconductors during his visit to Washington. He plans to highlight the UAE’s substantial investments in U.S. tech infrastructure, including funding from MGX for a $100 billion AI infrastructure venture.
The potential easing of export restrictions on Nvidia’s AI chips to the UAE reflects a broader strategic realignment, with the UAE positioning itself as a key player in the global AI landscape and a valuable partner to the United States in technological advancement.
Furthermore, the U.S. has approved the export of advanced AI chips to a Microsoft-run facility in the UAE, connected to Microsoft’s collaboration with G42. This partnership is part of a U.S. initiative to reduce China’s influence in the UAE’s tech industry and promote U.S. AI technology globally.
As the UAE continues to pursue its vision of becoming a global AI leader, the easing of restrictions on the sale of Nvidia’s advanced AI chips would represent a critical step forward. AI is increasingly seen as a key driver of future economies, and access to cutting-edge chips is fundamental to developing AI models capable of competing on the world stage. These chips power a wide range of AI applications, from machine learning to natural language processing and autonomous systems, which are crucial for everything from improving healthcare outcomes to developing military defense technologies.
The UAE has made significant strides in positioning itself as a central hub for AI innovation, largely through organizations like G42, which was founded by Sheikh Tahnoon bin Zayed Al Nahyan, the UAE’s National Security Adviser. G42 has emerged as a pivotal player in the country’s AI landscape, working on high-profile projects such as building bilingual AI models and developing AI-driven healthcare solutions. Moreover, G42 has made substantial investments in data centers that leverage U.S. technology, signaling the UAE’s commitment to aligning its AI strategy with the best-in-class technologies available globally.
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