Prime Highlights
- The United States has authorized Nvidia to export advanced AI chips worth billions to the UAE, supporting the Gulf nation’s development of AI data centers and technology infrastructure.
- This export deal strengthens the US-UAE technological partnership and aligns with broader US efforts to deepen ties with Gulf countries in AI and innovation.
Key Facts
- Under the agreement, the UAE can import up to 500,000 Nvidia AI chips annually starting in 2025, with the deal set to last through 2027, potentially extending to 2030.
- The US Commerce Department’s Bureau of Industry and Security issued the licenses, highlighting a “transformational US-UAE AI partnership” and signaling enhanced cooperation in AI research and technology.
Background
The United States allowed Nvidia to export chips worth billions of dollars to the United Arab Emirates, a move that will help the country strengthen its artificial intelligence capabilities. The export licenses were issued under a bilateral AI agreement between the US and UAE, first reached in May.
The deal is aimed at supporting the UAE’s construction of data centres, which are essential for developing AI models. Under the agreement, the UAE will be allowed to import up to 500,000 of Nvidia’s most advanced AI chips per year starting in 2025. The agreement is expected to last at least through 2027, with a possibility of extending until 2030.
The US Commerce Department’s Bureau of Industry and Security issued the export licenses. A government spokesperson told Bloomberg News that the Commerce Department is fully committed to the “transformational US-UAE AI partnership.” Nvidia has declined to comment on the report.
This partnership enhances the US-UAE relationship in the technology industry, where the Emirates would have access to the latest AI hardware. The alliance is linked to the wider US initiative to establish closer ties with the Gulf nations, after the promises made by former US President Donald Trump in May. Saudi Arabia also committed to deals worth 600 billion at the time, purchasing chips from Nvidia, Advanced Micro Devices, and Qualcomm.
The export agreement has been viewed as a major move in ensuring that the UAE improves its AI sector and emerges as a technology hub in the Gulf region. It also indicates an increased cooperation between the Emirates and the US in technology, research, and innovation.
