May 1, 2025 | — Washington Signals New Dynamics in the Middle East
NVDA +4.76% — The market reacted strongly to news that could reshape part of the global tech map: the United States is considering relaxing export restrictions on Nvidia chips to the United Arab Emirates, in a strategic turnaround that marks a new chapter in diplomacy between Washington and Abu Dhabi.
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🧠 Technology under surveillance: the weight of AI in geopolitics
Nvidia, today the global epicenter in the supply of GPUs aimed at artificial intelligence, has been one of the main targets of U.S. export control policies. Since 2022, Washington has imposed severe restrictions on sending high-performance chips to countries considered sensitive — primarily focusing on China, Russia, and, more recently, some Gulf nations.
The United Arab Emirates, despite being historical allies of the U.S., have been facing obstacles due to maintaining growing trade relations with China in cloud, telecommunications, and artificial intelligence sectors. The fear in Washington was that sensitive chips sold to Abu Dhabi could end up, directly or indirectly, being transferred to strategic rivals.
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💼 Corporate pressure and international lobbying
Sources linked to Nvidia and other players in Silicon Valley have been pressuring the U.S. government to reconsider the embargo. The justification: the United Arab Emirates has become one of the largest investment hubs for AI in the Middle East, with billions being channeled into data centers, research hubs, and institutional purchases of cutting-edge hardware.
The recent appreciation of Nvidia's stock (+4.76% on the morning of this Thursday) reflects optimism that the Arab country may regain legal access to advanced chips — including the H100 units used in generative AI applications, military modeling, and climate simulations.
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🌐 Future scenario: selective alignment or risky concession?
For analysts of international politics, the possible relaxation signals a pragmatic realignment: the U.S. recognizes the need to maintain influence in the Gulf even in light of China's advance in the region. Conversely, Abu Dhabi will need to provide formal guarantees that Nvidia chips will not be re-exported to third parties.
“🗣️Washington is trying to contain China with one hand — and sustain strategic alliances with the other,” said a former national security director interviewed by Reuters. “🗣️It’s an unstable balance.”
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🧩 Conclusion
If the relaxation is approved, the United Arab Emirates will become the first country in the Middle East to receive advanced AI chips with the endorsement of the Biden administration. The decision could set a precedent for other 'neutral' but strategic nations, further elevating Nvidia's importance in semiconductor diplomacy.
The power play of chips — previously invisible — now dictates state decisions.
