President Trump's recent announcement of multi-billion dollar AI deals between U. S. technology firms and Gulf countries has sparked significant concern among Washington policymakers and security experts. While some view these agreements as bolstering U. S. global leadership in AI, a growing bipartisan group of China hawks warns that sensitive American technology could end up benefiting Chinese interests indirectly. Central to these concerns are the Gulf nations involved—especially Saudi Arabia and the UAE—which have longstanding trade and diplomatic ties with China, raising the risk that exported AI technologies and advanced components may be diverted or accessed by Chinese entities. This risk is amplified by the complex geopolitical sensitivity of the technology amid ongoing U. S. -China tensions over tech supremacy and national security. A particularly contentious issue is the proposed export of over one million advanced AI chips to the UAE, currently under serious consideration by U. S. officials. These cutting-edge chips power sophisticated AI systems, and transferring them beyond direct U. S. control sparks fears that they could be misused or transferred without authorization, potentially compromising U. S. national security. Critics argue that current U. S. regulatory frameworks lack sufficient safeguards to prevent such outcomes. In response, the House Select Committee on the Chinese Communist Party has introduced legislation to tighten export controls on AI chips and related technologies, aiming to enhance oversight and block potential infiltration of American AI tech into Chinese networks via third-party countries.

This reflects a broader Congressional effort to address vulnerabilities in globalized tech supply chains where commerce and security interests intersect. Compounding these concerns are recent U. S. export control policy shifts. The Department of Commerce now requires explicit approval before exporting advanced AI technologies, marking a shift from earlier, less restrictive regulations under the Biden administration. This change acknowledges the heightened risks of unregulated AI technology dissemination, especially to regions with opaque regulations or close ties to geopolitical rivals. Beyond export controls, some U. S. policymakers worry about moving AI infrastructure to the Gulf, attracted by government subsidies and strategic partnerships. While such relocation offers expansion opportunities for tech firms, it could undermine domestic AI research and reduce U. S. oversight over emerging technologies. These intertwined factors present a significant challenge for U. S. policy: balancing the commercial and diplomatic benefits of AI engagement with Gulf nations against the necessity of protecting sensitive technology from adversaries. The Trump administration’s push to expand American tech abroad reflects a drive to maintain competitiveness in a rapidly evolving technological arena, but without rigorous safeguards, crucial technologies risk indirectly empowering competitors like China. The situation underscores the evolving landscape of global technology governance, where accelerated innovation and complex geopolitical relationships—such as those between Gulf nations and China—demand nuanced policy responses and enhanced international cooperation. Moving forward, congressional and executive actions must comprehensively address these challenges by regulating exports, enforcing ethical standards and compliance in American AI firms’ foreign dealings, and sustaining a robust domestic AI ecosystem vital for preserving U. S. technological leadership and national security. In summary, the unfolding U. S. -Gulf AI deals reveal competing priorities in American foreign and technology policy: the drive for global AI market leadership versus the imperative to prevent sensitive technologies from bolstering geopolitical rivals. Washington’s response will significantly influence both U. S. national security and the global power balance in technology and innovation.