Earlier this year, it was announced that the U.S. and the UAE had reached a preliminary agreement allowing the UAE to import 500,000 of Nvidia’s most advanced artificial intelligence (AI) chips annually, starting in 2025.
Despite U.S. President Donald Trump’s endorsement of the deal during his visit to the UAE in May 2025, the U.S. administration has put the deal on hold due to concerns that the AI chips could end up in China.
The note provides a comprehensive overview of the following aspects:
- The current U.S. stance on the deal
- Ongoing talks between U.S. and Emirati officials over the deal
- UAE views on these talks
- An Emirati proposal to ease U.S. concerns
- U.S. views on the proposal
The note also mentions UAE National Security Advisor and G42 Chairman Sheikh Tahnoon Bin Zayed’s stance on the issue, anticipated actions, and alternative options if the Nvidia deal collapses.
