The United States has approved several billion dollars worth of Nvidia chip exports to the United Arab Emirates (UAE), according to a report by Bloomberg News. The move signals Washington’s support for expanding technology partnerships with Gulf states, particularly in the fast-growing field of artificial intelligence. Bloomberg cited people familiar with the matter who confirmed that the Commerce Department’s Bureau of Industry and Security recently issued the export licenses to Nvidia under the terms of a bilateral AI agreement established in May.
The export approvals are expected to accelerate the UAE’s efforts to build a network of advanced data centers capable of supporting the development and training of large-scale AI models. The UAE, which has been investing heavily in artificial intelligence infrastructure, reportedly agreed to match the value of the chip exports with a reciprocal investment in the United States. This arrangement underscores the mutually beneficial nature of the deal, aimed at strengthening both nations’ positions in the rapidly evolving global AI ecosystem. Nvidia declined to comment on the report, while the US Department of Commerce reaffirmed its commitment to what it described as a “transformational” US-UAE AI partnership.
According to earlier reports by Reuters, the agreement between Washington and Abu Dhabi includes a preliminary understanding allowing the Emirates to import up to 500,000 of Nvidia’s most advanced AI chips annually starting in 2025. The arrangement is expected to run at least through 2027, with the potential to extend to 2030, depending on future cooperation and market conditions. These exports are viewed as a critical component of the UAE’s broader national AI strategy, which aims to position the country as a leading hub for technological innovation and data-driven economic growth.
The approval also aligns with US President Donald Trump’s broader diplomatic and economic agenda in the Gulf region. During his visit to the Middle East earlier this year, Trump announced $600 billion in commitments from Saudi Arabia, which included substantial deals to purchase semiconductor components and AI hardware from Nvidia, Advanced Micro Devices (AMD), and Qualcomm. The United States views these technology partnerships as essential to maintaining strategic ties with Gulf economies while promoting American innovation in key sectors such as semiconductors, cloud computing, and AI infrastructure.
Industry analysts suggest that the export licenses mark a significant milestone in the deepening of US-UAE relations in the high-tech sector. They note that as global competition over AI supremacy intensifies, the deal reflects both nations’ intent to collaborate on secure and scalable digital infrastructure. For Nvidia, the approvals not only expand its footprint in the Middle East but also reaffirm its role as a key enabler of next-generation computing power essential for artificial intelligence development worldwide.
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