Nvidia to Export 500,000 AI Chips Yearly to UAE in U.S. Agreement

US Nears Deal to Export 500,000 Nvidia AI Chips Annually to UAE Starting 2025

The United States is reportedly nearing an agreement that would permit the United Arab Emirates to import 500,000 of Nvidia’s most cutting-edge AI chips annually beginning in 2025, according to Reuters. The important agreement, which is presently in draft form, is intended to help the UAE achieve its expanding goals in data center construction and artificial intelligence.

Under the proposed agreement, 100,000 of these AI chips will be allocated to G42, a leading Abu Dhabi-based technology firm supported by the sovereign wealth fund Mubadala and U.S. private equity firm Silver Lake. The remaining chips will be distributed among major American tech companies such as Microsoft and Oracle, both of which are planning to expand their data center operations in the Gulf region.

The agreement’s original term would run through 2027, with a potential extension until 2030. A special clause in the agreement mandates that, in order to promote a bilateral infrastructure relationship, a similar facility must be developed in the United States for each data center G42 builds in the United Arab Emirates.

Previously, under the Biden administration, restrictions limited the UAE’s access to high-performance computing technology. However, the Trump administration is now moving to lift those caps, enabling greater technology transfer. During his recent Gulf tour, former President Trump announced substantial Saudi investments totaling $600 billion, which include significant purchases from Nvidia, Advanced Micro Devices (AMD), and Qualcomm.

If the agreement is approved, the UAE might become a major player in the global artificial intelligence market, joining China and the US as the two most powerful nations in this field. Ongoing talks are centered on determining which AI chips are eligible under the agreement and making sure that stringent protections are in place, although some US government officials are cautious.

Nvidia’s state-of-the-art Blackwell and Rubin GPU models, which will perform better than the previous Hopper generation, are among the chips used in the export. This will significantly increase the UAE’s capacity for AI infrastructure.