UAE Semiconductor Deal with the US

On Friday, President Donald Trump approved a deal allowing the UAE to purchase advanced semiconductors from American companies as part of the country’s push into the artificial intelligence sector. This move helps strengthen ties between the Gulf nation and the expanding US chip ecosystem.

The agreement was announced in Abu Dhabi, marking the conclusion of Trump’s Middle East tour, which included stops in Saudi Arabia and Qatar. This development caps off a week filled with significant announcements related to AI.

“Both countries have agreed to pave the way for the UAE to acquire some of the most advanced AI semiconductors available,” Trump stated. “This partnership is expected to generate substantial business opportunities and support the UAE’s ambition to become a key player in the field of artificial intelligence.”

Commerce Secretary Howard Lutnick emphasized the ongoing presence of American tech companies in the UAE, where they operate data centers and provide cloud services under US control. He also highlighted the “strong security guarantees” in place to maintain US technology integrity.

Lutnick later expressed gratitude for the productive week with Trump on social media, mentioning that over $3 trillion in new investments had been secured alongside the announcement of their first AI acceleration partnership.

This UAE agreement is part of a broader series of negotiations in the Gulf. Recently, a Saudi-backed startup in Riyadh committed to purchasing 18,000 Nvidia chips for its data centers, alongside a $10 billion collaboration with AMD. Additionally, Amazon Web Services has pledged another $5 billion for an “AI Zone” dedicated to training Saudi government models.