US Approves Nvidia Chip Exports to UAE to Boost AI Technology

Post by : Raina Nasser

The United States has officially approved several billion dollars worth of Nvidia chip exports to the United Arab Emirates, a key step in strengthening the Gulf nation’s artificial intelligence (AI) capabilities and technology infrastructure. The licenses were issued by the U.S. Commerce Department’s Bureau of Industry and Security under a bilateral AI agreement signed in May, according to officials familiar with the matter.

The agreement allows the UAE to import up to 500,000 of Nvidia’s most advanced AI chips per year starting in 2025. The deal is expected to continue at least through 2027, with the possibility of extending to 2030. These high-end chips will enable the UAE to build advanced data centers and significantly enhance its AI research, development, and deployment capabilities.

This approval comes as part of a reciprocal arrangement, with the UAE planning significant investments in American technology sectors. A U.S. government spokesperson emphasized the strategic importance of this deal, saying, “The Commerce Department is fully committed to the transformational U.S.-UAE AI partnership.”

The move also reflects broader U.S. efforts to strengthen ties with Gulf nations through technology and innovation. During a Gulf tour in May, former U.S. President Donald Trump announced $600 billion in commitments from Saudi Arabia, including plans to purchase large quantities of chips from leading companies like Nvidia, Advanced Micro Devices (AMD), and Qualcomm. The UAE deal is a continuation of this strategy, highlighting the growing importance of AI collaboration between the United States and Gulf countries.

The deal is expected to accelerate the UAE’s AI development programs, supporting initiatives in smart cities, autonomous systems, and industrial automation. By building world-class data centers equipped with Nvidia chips, the UAE aims to position itself as a regional leader in AI and digital innovation, contributing to long-term economic growth and technological competitiveness in the Middle East.

Experts note that this partnership could also pave the way for further technological cooperation between Gulf nations and the U.S., potentially covering sectors such as cloud computing, machine learning, and advanced semiconductor technology. Analysts see the approval as a strategic move to enhance regional AI capabilities while reinforcing trade and investment relations.

Overall, the U.S. approval of Nvidia chip exports marks a major milestone in the UAE’s AI ambitions, strengthening the Gulf country’s role as a hub for technological innovation while deepening collaboration with the United States.