The new permits for AI chip shipments by Nvidia apply only to U.S. companies operating in the UAE
In sum – what to know:
U.S. approves Nvidia chip exports – Licenses allow several billion dollars’ worth of Nvidia AI chips to be shipped to U.S. companies like Oracle operating in the UAE.
Part of U.S.-UAE AI accord – The permits advance a 5-gigawatt data center project with OpenAI, Oracle, Cisco, and G42 as key participants.
Geopolitical balancing act – The deal underscores Washington’s mixed stance on AI partnerships in the Gulf amid concerns over China’s influence in the region.
The U.S. government has authorized several billion dollars’ worth of Nvidia AI chip exports to American companies for use in projects in the United Arab Emirates (UAE), according to a Bloomberg report.
The Commerce Department’s Bureau of Industry and Security issued the licenses as part of a bilateral agreement with the UAE signed in May. The new permits for AI chip shipments by Nvidia apply only to U.S. companies operating in the UAE, including Oracle, but not to local players such as Abu Dhabi-based G42.
The deal forms part of a broader U.S.-UAE AI partnership, which is chiefly anchored around a 5-gigawatt hyperscale data center in Abu Dhabi featuring OpenAI as a core tenant, alongside Oracle, Cisco, SoftBank, and G42. In return, the UAE has committed to invest $1.4 trillion in the U.S. over the next decade, though specific projects remain undisclosed. Nvidia shares rose 1.8% to a record high following the announcement.
The move comes amid Washington’s divided stance on large-scale AI cooperation with Gulf states. Critics in Congress and within the federal administration have raised concerns over potential technology exposure to nations with close ties to China, including the UAE and Saudi Arabia.
In May, Nvidia, Cisco, Oracle, and OpenAI announced they were backing the “UAE Stargate” AI data center project. Nvidia is to provide its latest Blackwell GB300 systems for the project. The setup is projected to align with the parallel US Stargate initiative, a domestic AI infrastructure project introduced by US President Donald Trump following his inauguration in January.
Located in Abu Dhabi, the capital of the United Arab Emirates, UAE Stargate will be developed by Emirati tech firm G42.