President Donald Trump said on Friday in Abu Dhabi that the United States and the United Arab Emirates are moving forward with an agreement to allow Abu Dhabi to purchase advanced AI chips manufactured by American companies.
Speaking at a business breakfast organized by the U.S.-UAE Business Council, Trump said: “Yesterday, the two countries also agreed to create a pathway for the UAE to purchase some of the most advanced AI semiconductors in the world from American companies. It’s a very big deal.”
According to CNBC, that deal could mean the UAE will be able to import 500,000 Nvidia H100 chips per year. These are the most powerful chips made by any American company and are used in large AI data centers.
The UAE wants to quickly build its own AI infrastructure and has already invested money in becoming a major player in artificial intelligence. But national security rules have kept U.S. chips out of the Gulf’s hands for years.
Trump plans to lift chip restrictions.
Now, that could change. The Trump administration is working to reverse a Biden-era rule that banned the export of high-end AI chips, even to countries considered allies. That rule was intended to keep advanced chip technology away from potential adversaries, especially China, but it also blocked U.S. friendly states like the UAE from buying the parts they needed.
Some lawmakers and national security officials are pushing back, concerned that the chips could eventually fall into the wrong hands. Even people within the Trump administration are reportedly not on board. Still, Trump made it clear that he is focused on the business side: “It’s a very big deal,” he repeated, pointing to billions of dollars in deals expected in the future.
