Trump Prepares to Tear Up Biden's Export Red Line, UAE Expected to Be Approved to Purchase One Million Nvidia Chips

According to media reports, sources familiar with the matter revealed that the Trump administration is considering reaching an agreement that would allow the UAE to import over 1 million advanced Nvidia chips, a quantity far exceeding the limits set by the Biden administration's regulations on AI chip exports.

Sources said that under the current plan, the UAE would be able to import 500,000 of the most advanced chips annually from now until 2027.The reports also emphasized that the agreement between the US and the UAE is still under negotiation, and its content may change.

Sources mentioned that one-fifth of the chips would be allocated to the local AI company G42, while the rest would be provided to US enterprises building data centers in the UAE. One of these enterprises could be OpenAI, which is expected to announce plans to expand its data center in the UAE as early as this week.

Sources indicated that over the broader term of the deal, G42 would gain access to computing power equivalent to 1 million to 1.5 million H100 chips, a quantity roughly four times that stipulated by the "Framework for AI Diffusion Export Controls" that the Biden administration urgently introduced before leaving office.

Overall, if the agreement proceeds at its current scale, it would mark a significant shift in US policy towards AI development in the Middle East, particularly in the UAE. Previously, US officials had maintained vigilance towards the UAE government and local enterprises.

Sources said that it is currently unclear what national security safeguards the Trump administration has set in the potential chip agreement. On Tuesday (May 13), Trump embarked on a Middle East visit, with Saudi Arabia as his first stop, followed by Qatar and the UAE.

Shortly before the news was released, Trump introduced Nvidia CEO Jensen Huang to Saudi Crown Prince and Prime Minister Mohammed bin Salman. Subsequently, Huang announced that Nvidia would supply chips to Humain, a newly established AI investment company in Saudi Arabia, for the construction of a data center with a capacity of up to 500 megawatts (MW).

Sources said that Trump might announce the chip agreement with the UAE during his visit there. It is understood that David Sacks, the White House's AI advisor, is a key figure in the negotiations with the UAE, having traveled there several days in advance of Trump's visit.

Last weekend, Sheikh Tahnoon bin Zayed Al Nahyan, Chairman of G42 and National Security Advisor of the UAE, posted a photo of himself with Sacks on social media, stating that the two had discussed AI development plans and opportunities in both countries.

In March this year, Tahnoon traveled to Washington to lobby the Trump team to relax export restrictions on Nvidia chips. According to media reports, the UAE had pledged to invest US$1.4 trillion in US technology, energy, and infrastructure in exchange for approval to purchase more US chips.

Earlier that day, Sachs stated that the US did not need to block the global spread of its AI chips and technology to manage national security risks.