The United States is close to finalizing a deal that would allow the United Arab Emirates to import 500,000 of Nvidia’s most advanced AI chips each year starting in 2025, according to a report. The move is expected to support the UAE’s efforts to expand AI data center infrastructure.
The deal is expected to last at least until 2027, with the possibility of being extended to 2030, Reuters reported, citing people familiar with the situation. Under the draft terms, 100,000 chips per year would go to UAE-based tech company G42.
The remaining chips would be allocated to U.S. firms like Microsoft and Oracle, which may also develop data centers in the UAE. The agreement between the U.S. and UAE is still under negotiation and could change, according to sources.
One source noted the deal is facing increased opposition within the U.S. government. Parts of the arrangement were first reported by The New York Times.
The Biden administration had previously imposed restrictions on AI chip exports to prevent advanced processors from reaching countries like China, where they could support military development.
This week, President Donald Trump is visiting the Gulf region. Earlier this week, he announced $600 billion in commitments from Saudi Arabia, including major chip purchases from Nvidia, AMD, and Qualcomm.
Strengthening ties with Gulf nations has been a key focus of Trump’s administration. If finalized, the UAE deal would significantly expand G42’s AI computing power, three to four times more than what was previously allowed under Biden-era export rules.
The Trump administration has said it will roll back those restrictions. Currently, most of the world’s AI computing power is concentrated in the U.S. and China. If the proposed AI chip deals in the Gulf, especially in the UAE, move forward, the region could emerge as a third major player in the global AI race.
The U.S. Commerce Department, the White House, Nvidia, G42, and the UAE have not commented on the deal. G42 is backed by Abu Dhabi’s sovereign wealth fund, Mubadala, the UAE’s ruling family, and U.S. private equity firm Silver Lake.
The company’s chairman, Sheikh Tahnoon bin Zayed Al Nahyan, is also the UAE’s national security adviser and the president’s brother.
The draft agreement also includes a requirement for G42 to build matching data centers in the U.S. for every one it constructs in the UAE, according to sources. A separate working group will be set up to define what qualifies as an advanced AI chip and to establish related security measures.
The deal involves the most advanced graphics processing units. This could include Nvidia’s powerful new Blackwell chips or its upcoming Rubin chips, which are expected to outperform both Blackwell and the older Hopper series.
Originally published on ibtimes.ae