The UAE's bid to buy hundreds of thousands of advanced AI chips from Nvidia is supported by US officials who are concerned that China has access to advanced American technology, the Wall Street Journal reported Thursday.
US officials are considering whether to sell the tips directly to a company owned by Sheikh Tanoon bin Zayed Al Nahyan, the UAE's powerful national security adviser.
Tech CEOs, diplomats, security officials and investors are all clear about whether the US will begin exporting NVIDIA AI chips to the UAE as part of a much historic deal that President Donald Trump announced when he visited the Bay in May.
Bloomberg reported earlier this month that neither Saudi Arabia nor the United Arab Emirates were authorized to receive tips from the Commerce Department.
On Thursday, the WSJ reported that plans to export chips to the UAE are delayed as the US is considering new terms of the transaction.
New MEE Newsletter: Jerusalem Dispatch
Sign up to get the latest insights and analysis
Israel and Palestine are unpacked by Türkiye and lined up with other MEE newsletters
The original contract envisaged the UAE to purchase up to 500,000 Nvidia's most advanced AI chips each year from 2025. Of that volume, 400,000 will go to US companies working on data centers and AI projects within the oil-rich Gulf state.
However, the large slices – 100,000 chips – are to go directly to G-42, a state-owned AI company run by Sheikh Tahnoon, who is also the AI emperor of the United Arab Emirates.
Tanoon, who sports an astronaut sunglasses for eye conditions, manages the UAE's most ambitious technology investments and personally oversees outreach to the US.
His lobbying has been framed as a gamble by a wealthy Gulf state regarding America's technical capabilities against China. He visited President Donald Trump at the White House in March and laid the foundation for the deal announced in May.
White House Ai Czar David Sacks, who led the deal, is considered an advocate for driving sales.
How Blackrock and Italian transport dynasties maintain port operations in the Middle East
read more ”
Supporters believe that if the US does not ease restrictions, they could lose valuable markets from the Gulf to China. According to Bloomberg, Huawei approached both Saudi Arabia and the UAE to buy AI chips.
But our doubts about the U.S. Emirate's commitment to protecting American technology depended on Trump's visit. Trump stopped in Saudi Arabia, Qatar and the United Arab Emirates in May. His trip to the United Arab Emirates was the shortest, and dinners like in Qatar and Saudi Arabia were not included.
The Middle Eastern eye has revealed that Trump's National Security Council is trying to downplay his suspension in the United Arab Emirates. This was told by one source, the NSC explained, to MEE, because of Emiratis' frustration with perceived economic and military ties with China. Trump has since fired many of these NSC staff.
Some US defense and intelligence agency rushed for a deal and were worried that Trump had overlooked concerns about how to protect the American weapons system and the technology behind China's AI.
The WSJ reports that US officials want to block direct access to the G42 chips. The Commerce Department is not planning to approve tips to Emirati State Group, the WSJ reported.
Trump will have the final decision on exports. Just this week he met Nvidia CEO Jensen Huang and lifted the ban on NVIDIA, which sells H20 artificial intelligence chips in China. The decision has led to Nvidia's stock price rise.
The UAE is interested in the H100 chip, the most advanced AI chip produced by Nvidia. The cost of a single tip is estimated to be $25,000. Getting 500,000 sales to the UAE will be a boon for Nvidia. The vast number of chips highlights the unparalleled purchasing power of the Gulf region.
UAE US ambassador Yousef Al-Otaiba and Khaldoon Al-Mubarak, CEO and managing director of Mubadara, the sovereign assets fund for Abu Dhabi, attended the Energy and Technology Conference with senior US officials in Pittsburgh this week.
