Donald Trump announced on Friday that the United Arab Emirates and the United States have reached an agreement that will allow the Gulf nation to purchase some of the most advanced artificial intelligence semiconductors from American companies[2][5].
Major Technology Deal
The deal was finalized Thursday during Trump's visit to Abu Dhabi as part of his four-day trip to the Middle East[2][5]. This agreement represents a significant shift in U.S. policy, as the UAE previously faced restrictions under the Biden administration due to concerns about potential technology transfers to China[4].
"Yesterday the two countries also agreed to create a path for UAE to buy some of the world's most advanced AI semiconductors from American companies, a very big contract," Trump stated during the final stop of his multi-day tour that included Saudi Arabia and Qatar[5].
Details of the Agreement
According to earlier reports, the preliminary deal would allow the UAE to import approximately 500,000 of
Nvidia's most advanced AI chips per year, beginning in 2025[2]. The agreement reflects the Trump administration's confidence that these chips can be managed securely, in part by requiring data centers to be managed by U.S. companies[5].
The AI agreement also includes commitments from the UAE to:
- Invest in, build, or finance U.S. data centers that are at least as large and powerful as those in the UAE
- Further align their national security regulations with the United States
- Implement strong protections to prevent the diversion of U.S.-origin technology[4]
Economic Impact
This deal is expected to generate "billions and billions of dollars in business and accelerate the UAE's plans to become a really major player in artificial intelligence," according to Trump[5]. It comes as part of a broader framework where the UAE committed in March to a 10-year, $1.4 trillion investment in the United States across sectors including energy, AI, and manufacturing[5].
As part of the technology cooperation framework, the two countries also announced plans to launch a 1GW AI data center, which is part of a planned 5GW UAE-US initiative[1].
Strategic Significance
The agreement represents a major win for the UAE, which has been working to balance its relations between the United States, a longtime ally, and China, its largest trading partner[4][5]. The Gulf nation has been spending billions of dollars in its push to become a global AI player, but its ties to China had limited its access to U.S. chips under the previous administration[4].
This deal comes just days after
Nvidia and
Advanced Micro Devices agreed to supply semiconductors to Saudi AI startup Humain, signaling increased U.S. technology cooperation with Middle Eastern nations[2][3].
