Major AI Hardware Deal Under Negotiation
The United States is reportedly negotiating a deal that could allow the United Arab Emirates to import more than one million of Nvidia's highly advanced AI chips over a multi-year period. This potential agreement, still in negotiation and subject to change, would stand in sharp contrast to existing Biden-era restrictions limiting such exports intended to curb the diffusion of cutting-edge American technology to sensitive regions and third parties[3][4].
Deal Details: Scope and Distribution
- The proposed arrangement would enable the UAE to import 500,000 of Nvidia’s most advanced AI chips annually through 2027.
- Approximately 20% of these chips would be earmarked for Abu Dhabi-based artificial intelligence firm
G42, with the remainder allocated to American companies developing data centers in the Gulf nation.
- Over the lifespan of the deal, G42 could amass enough computing capability for between one million and 1.5 million Nvidia H100 chips, significantly more than it could have under current restrictions[3].
- One possible participant is
OpenAI, speculated to announce new UAE data center capacity as soon as this week[3].
National Security and Policy Concerns
The negotiations have sparked controversy among U.S. lawmakers and security experts, who worry about the potential re-export of American hardware to China or other unauthorized destinations via UAE-linked entities such as G42. Rep. John Moolenaar, the top Republican on the House China committee, has emphasized the need for rigorous safeguards and verifiable controls before any new agreements are finalized. These concerns echo earlier warnings about the risks associated with advanced AI chips falling into adversarial hands, despite attempts to boost US-Gulf technology ties[3].
Shift from Biden-Era Controls?
The proposal would mark a departure from the strict AI chip export controls imposed during the Biden administration. Those controls were designed to restrict the spread of powerful American AI technology abroad, particularly to regions and companies with potential links to China. If the agreement proceeds, it could overhaul the current export control framework and expand the UAE’s AI capabilities dramatically[3][5].
What’s Next?
While the deal is still in flux, its approval would signal a significant expansion of US technology exports to the Gulf and mark a strategic partnership between American tech giants, UAE data center operators, and regional AI leaders. However, US officials and lawmakers continue to call for careful scrutiny to ensure that the chips do not reach unintended users or countries in violation of American security interests[1][3][4].
