UAE to Gain Access to Half a Million Advanced Nvidia AI Chips Under Preliminary US Deal

The United States is reportedly close to finalizing a preliminary agreement with the United Arab Emirates (UAE) to allow the import of up to 500,000 of Nvidia’s most advanced AI chips annually, beginning in 2025, according to informed sources. This move is expected to significantly enhance the UAE’s ability to build AI-powered data centers, positioning the Gulf state as a rising hub in the global artificial intelligence landscape.

Long-Term Tech Collaboration Through 2027 – Possibly 2030

The proposed agreement would initially span through 2027, with the possibility of extension until 2030. As outlined in the draft, 20% of the AI chips, equivalent to 100,000 units per year, would be allocated to G42, a leading UAE-based technology firm. The remainder would be distributed among major US tech companies such as Microsoft and Oracle, both of which are exploring the expansion of their data center infrastructure in the UAE.

Potential Geopolitical Shift in AI Power Centers

If implemented, the deal would mark a major shift in global AI computing power, currently concentrated in the United States and China. Analysts suggest that this agreement, alongside similar regional initiatives, could establish the Gulf region, particularly the UAE, as a third strategic power center in artificial intelligence development.

Security and Export Control Under Review

The agreement remains under negotiation and may undergo revisions. Sources noted that the deal is facing growing opposition within parts of the US government, especially in light of recent efforts to restrict exports of advanced semiconductor technology to prevent unintended technology transfers to China.

A separate working group will be formed to define what qualifies as an “advanced AI chip” and to establish national security protocols.

UAE-Saudi AI Expansion Backed by US Tech Giants

In a parallel development, during President Donald Trump’s visit to the Gulf this week, the US approved the sale of 18,000 Nvidia GB300 Grace Blackwell chips to an AI company owned by Saudi Arabia’s Public Investment Fund (PIF). Furthermore, Trump announced over $600 billion in economic commitments from Saudi Arabia, including major purchases from Nvidia, AMD and Qualcomm.

This follows a shift in US policy, with the Trump administration signaling its intent to rescind AI chip export restrictions previously introduced under President Joe Biden. The chip volumes allowed under the new deal with the UAE would represent a three- to fourfold increase in compute power compared to the former regulations.

Dual Development Clause: UAE and US

A unique clause in the draft agreement stipulates that for every data center built in the UAE by G42, a parallel facility must also be constructed in the United States. This aims to promote domestic AI infrastructure growth alongside international cooperation.

Key Stakeholders and Strategic Influence

G42 is backed by Mubadala, the Abu Dhabi sovereign wealth fund, Silver Lake, a prominent US private equity firm, and members of the UAE’s ruling family, including Sheikh Tahnoon bin Zayed Al Nahyan, the UAE’s national security adviser and brother of the President.
Although Nvidia, the White House, and the US Commerce Department have declined to comment, the proposed agreement, if finalized, would be a landmark in US-Gulf AI collaboration, setting the stage for a new era of technological partnership and strategic influence.