US Approves Nvidia Chip Exports to UAE Under AI Deal

The United States has approved billions of dollars’ worth of Nvidia chip exports to the United Arab Emirates, according to Bloomberg News. The licenses were issued by the Commerce Department’s Bureau of Industry and Security as part of a bilateral artificial intelligence agreement finalized in May 2025.

Boosting UAE AI Infrastructure

The export deal is expected to support the UAE’s construction of data centers that are vital for developing advanced AI models. By gaining access to Nvidia’s cutting-edge chips, the UAE will enhance its AI capabilities and digital infrastructure, strengthening its position as a regional technology hub.

Details of the Export Agreement

Under the preliminary agreement, the UAE is allowed to import 500,000 of Nvidia’s most advanced AI chips per year, beginning in 2025. The agreement is valid at least through 2027, with a possibility of extension until 2030, enabling long-term AI development projects across the Emirates.

Government Statements

A spokesperson for the US Commerce Department confirmed the government’s commitment to the US-UAE AI partnership. Nvidia, meanwhile, declined to comment on the report. Neither the White House nor the UAE representatives immediately responded to further requests for comment.

Context of US-Gulf Relations

This agreement comes amid a broader effort by the US to strengthen ties with Gulf countries. In May, US President Donald Trump announced commitments totaling $600 billion from Saudi Arabia, including significant purchases of chips from Nvidia, Advanced Micro Devices, and Qualcomm. These deals are part of a strategy to foster technology and economic collaboration in the region.

Strategic Importance of the Deal

The export approval not only facilitates the UAE’s AI ambitions but also reinforces the broader US-Gulf technology partnership. By enabling access to world-class computing hardware, the deal ensures that the UAE can advance AI research and infrastructure projects, supporting economic growth and innovation.

The US-UAE AI agreement could become a model for technology collaboration between nations. The continued supply of Nvidia chips over several years will allow the UAE to build sophisticated AI systems, create high-tech jobs, and attract international investment in its technology sector.