The United States and the United Arab Emirates have formalized a deal to construct the largest artificial intelligence campus outside of the U.S.
While details about the specific AI chips from Nvidia or other manufacturers included in the UAE’s data center weren’t disclosed, it’s been suggested that access to advanced AI chips may soon be granted to the Gulf nation. A recent televised discussion featured Nvidia’s CEO Jensen Huang alongside President Trump and UAE President Sheikh Mohamed bin Zayed Al Nahyan in Abu Dhabi.
This long-term agreement, confirmed during Trump’s visit to Abu Dhabi, represents a significant success for the UAE. It’s part of an effort to balance its relationships with traditional allies and China, which is a substantial trading partner for the U.S. The arrangement indicates the Trump administration’s belief in its ability to manage chip distributions by requiring U.S. companies to oversee their data centers.
The UAE, known for its vast oil resources, is investing billions to elevate its status as a global AI contender. However, previous ties with China have constrained access to American chips under Biden’s administration.
The AI agreement includes aspects of investment, construction, and funding for U.S. data centers that match the scale of those in the UAE, according to the White House.
Moreover, the contract marks a significant commitment from the UAE to align its national security regulations more closely with those of the United States.
Reports indicate that starting in 2025, the UAE may be permitted to import as many as 500,000 of Nvidia’s most advanced AI chips annually. Nvidia chose not to comment, and the UAE’s Foreign Ministry did not provide an immediate response.
Central to this deal is a 10-square mile AI campus in Abu Dhabi, with a projected capacity of 5 gigawatts for AI data centers.
“This surpasses all other significant AI infrastructure announcements we’ve seen so far,” commented Lennart Heim, an analyst at the Rand Corporation, on X.
The Abu Dhabi-backed firm G42 will oversee the campus’s construction, but U.S. companies will operate the data centers and provide cloud services under U.S. control throughout the region, stated Commerce Director Howard Lutnick in a release.
The U.S. fact sheet mentioned Qualcomm, a chip firm involved in AI engineering, collaborating with local partners to enhance cybersecurity and promote the adoption of cloud services from Amazon Web Services, the cloud branch of a technology and commerce firm.
Relaxed Relations
Historically, the U.S. has pursued policies aimed at limiting China’s access to advanced semiconductors.
Regulations have been relaxed under the Trump administration, and Ai Czar David Sacks informed Riyadh that Biden’s export controls “aren’t intended to impact any friends, allies, or strategic partners.”
Granting the UAE access to advanced chips from companies like Nvidia signifies a significant turning point.
“This shift will allow the UAE to strengthen its technological collaboration with the U.S. while maintaining its trade relationships with China,” noted Mohamed Soliman, a senior fellow at the Middle East Institute.
“This doesn’t imply a complete break from China; it suggests a recalibration of our tech strategy to align with U.S. standards in crucial areas like computing, cloud capabilities, and the chip supply chain,” he added.
AI was a central theme during Sheikh Mohamed bin Zayed Al Nahyan’s visit to Washington on President Biden’s final day in office. G42 and MGX, both state-affiliated entities driving UAE’s AI investments, also engage with U.S. firms like OpenAI and Elon Musk’s Xai, while Microsoft committed $1.5 billion to G42 last year.
Companies involved highlighted that security guarantees under U.S. guidance led G42 to dismantle previous Chinese hardware and divest from Chinese investments.
Nonetheless, entities such as Huawei and Alibaba Cloud continue to operate within the UAE, and the distribution of AI chips into China has been monitored by several countries, including Malaysia, Singapore, and the UAE, according to sources reported by Reuters in February.
