AI MemeLab | Trump Eyes Landmark AI Chip Deal with UAE in Strategic Shift

Written byMarket Vision
Tuesday, May 13, 2025 10:40 pm ET1min read

The Trump administration is poised to redefine its AI export policy by considering a

deal to allow the UAE to import over one million advanced chips, breaking away from the restrictions established during Biden's tenure. 

This strategic move could significantly bolster US-Middle Eastern relations, enhancing the UAE's technological landscape. The agreement envisions the UAE receiving 500,000 chips annually until 2027, with a portion allotted to local AI firm G42, while the rest will support data centers of American companies like OpenAI. However, the deal's impact hinges on the security measures Trump implements. His Middle Eastern tour, starting in Saudi Arabia, may coincide with the formalization of this agreement. Nvidia's Jensen Huang plans to supply chips to Saudi Arabia's new AI firm, Humain, further linking the region's AI ambitions to US tech resources. Sheikh Tahnoun's recent diplomatic efforts and discussions with White House AI advisor David Sacks highlight the UAE's drive to accelerate its AI capabilities through this potential collaboration.

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