The United States is close to finalizing a preliminary agreement with the United Arab Emirates (UAE) that would allow the UAE to import up to 500, 000 of Nvidia’s most advanced AI chips annually starting in 2025. This deal aims to boost the UAE’s data center development and technology infrastructure significantly. According to two informed sources, the draft agreement may also involve major tech firms like Oracle to help expand data center capabilities in the UAE, reflecting a growing U. S. -UAE collaboration in technological advancement and infrastructure. Though progress has been made, the agreement remains preliminary with ongoing negotiations addressing regulatory compliance and mutual interests. The Biden administration's engagement underscores a broader strategy to strengthen technology partnerships and maintain U. S. leadership in AI innovation. This evolving deal follows recent U. S. export restrictions on advanced AI chips and semiconductors designed to protect national security while balancing economic and strategic priorities. Historically, former President Donald Trump also sought to enhance U. S. -UAE technology and trade relations, involving companies such as Qualcomm, highlighting the enduring importance of bilateral cooperation in emerging technologies amid changing geopolitical contexts.

The AI chips central to this agreement are among Nvidia’s highest-tier processors, essential for machine learning, data analysis, and sophisticated AI applications. Currently, most of these U. S. -made chips are used domestically or subject to strict export controls. The U. S. Commerce Department plays a critical role in regulating these exports, ensuring sensitive technologies do not reach adversaries while enabling legitimate international cooperation. On the UAE side, Abu Dhabi’s sovereign wealth fund, closely linked to the ruling family, actively partners with U. S. investors and tech companies to advance innovation and economic diversification. Beyond chip sales, the preliminary deal aims to foster joint AI research, development, and deployment initiatives, including potential joint ventures and innovation hubs, benefitting both economies and bolstering their positions in the global AI landscape. One source emphasized that the scale of chips proposed for export is unprecedented, signaling the UAE’s ambitious plans to accelerate digital transformation, solidify its status as a regional tech hub, and contribute to global AI progress. In summary, the near-final preliminary agreement permitting the UAE to import 500, 000 advanced Nvidia AI chips annually from 2025 represents a strategic U. S. -UAE partnership focused on innovation, economic growth, and technological leadership. While still subject to ongoing negotiations and regulatory approvals, this potential deal marks a significant milestone in their collaboration within artificial intelligence and data infrastructure development.