US Approves Nvidia Chip Exports for UAE AI Project
The US government has approved export licenses for billions of dollars worth of Nvidia AI chips for use by US companies—including Oracle—at their facilities in the United Arab Emirates (UAE). This approval is the first step in implementing a bilateral AI pact reached last May and marks the first such approval for Nvidia chip sales to the Gulf region since President Donald Trump took office. The shipments will not be going to local customers like Abu Dhabi AI giant G42.
According to sources familiar with the matter, the licenses come as the UAE prepares a major reciprocal investment plan in the United States. The AI deal centers on a 5-gigawatt data center in Abu Dhabi with OpenAI as the anchor tenant, with involvement from Oracle, Cisco, SoftBank, and G42. However, in Washington, the package has sparked debate due to security sensitivities—particularly the UAE's economic proximity to China and concerns about technology transfer.
Under the framework of the deal, the US plans to approve up to 500,000 advanced AI chips per year, with about 20% allocated to G42—although specific licenses for the local company have not yet been granted. The US emphasized that most of the UAE's advanced chips will be owned and operated by approved US cloud companies. The timing of additional licenses will depend on the details of the UAE's investment in the US.
This policy marks a change of pace compared to the previous period, when the licensing process was slowed while a global framework was developed to restrict chip sales to many countries, including the UAE. The current administration has stated that it will lift these restrictions and adopt a "security-conditional" approach: chip access can be relaxed if tied to clear security commitments and managed by US cloud operators locally.
Key points:
Nvidia's export licenses are granted to US companies (including Oracle) operating in the UAE.
Part of a bilateral AI pact; key project: 5 GW data center in Abu Dhabi (OpenAI as anchor tenant).
Controversy in Washington: security concerns & UAE-China proximity.
Plans for up to 500,000 chips/year; the majority operated by US clouds; permits for G42 have not yet been issued.
Further licensing depends on the details of the UAE's investment in the US and security commitments. (asd)
Source: Newsmaker.id
