U.S. and UAE Forge AI Chip Deal
In a strategic move to bolster artificial intelligence (AI) capabilities, the U.S. and United Arab Emirates (UAE) have come to an agreement that paves the way for Abu Dhabi to acquire cutting-edge American-made semiconductors. President Donald Trump announced this development during his visit to the Emirati capital, highlighting the potential for a substantial contract.
Details of the Agreement
During a breakfast event with the U.S.-UAE Business Council, Trump revealed that the two nations agreed on a pathway for the UAE to import some of the world’s most advanced AI chips, specifically referencing a preliminary agreement allowing the UAE to purchase 500,000 of Nvidia’s H100 chips annually. This significant acquisition is expected to enhance the UAE’s ability to establish the necessary data centers for its AI projects.
The UAE has been actively investing in AI infrastructure, aiming to position itself as a global technological hub. The agreement with the U.S. regarding semiconductor imports reflects a crucial step towards realizing this ambition.
Shifting Export Controls
The deal also signals a shift in U.S. export policy, as the Trump administration plans to repeal the Biden-era “AI diffusion rule,” which had imposed strict controls on the export of advanced AI chips to friendly nations due to national security concerns. Experts and lawmakers have expressed apprehension that lifting these restrictions might allow sensitive American technology to reach adversaries like China, raising security risks.
A Partnership in Innovation
Trump’s comments followed the announcement of a partnership between the U.S. and UAE to establish a massive AI campus in Abu Dhabi, potentially the largest of its kind outside the United States. This ambitious data center project will be developed by the Emirati tech firm G42 in collaboration with several U.S. companies, with plans for a considerable 5-gigawatt capacity spanning 10 square miles.
While the specific U.S. firms involved in the campus project were not disclosed, prominent tech executives accompanied Trump on his Middle East trip, including leaders from major firms such as Nvidia, OpenAI, SoftBank, and Cisco. Their presence underscores the importance of this collaboration in advancing AI innovation and infrastructure development.
This agreement between the U.S. and UAE not only reflects the growing importance of AI in global technology strategies but also highlights the challenges and complexities surrounding national security and technology transfers in today’s geopolitical landscape.