The United States is advancing toward an agreement that would allow the United Arab Emirates to import as many as 500,000 of Nvidia’s top AI chips annually, beginning in 2025, as reported by Reuters.
### Distribution of Chips
Out of the total, 100,000 chips are designated for G42, a company based in Abu Dhabi that is supported by the sovereign wealth fund Mubadala and the private equity firm Silver Lake. The remainder will be allocated to American companies such as Microsoft and Oracle, which are also looking into expanding their data center operations in the Gulf region.
### Agreement Details
This draft agreement is set to continue until 2027, with the potential for an extension to 2030. A stipulation included in the pact requires G42 to establish one data center in the U.S. for every data center constructed in the UAE.
### Shift in Export Policies
The Biden administration had previously imposed limits on chip exports, impacting the UAE’s computational capabilities. However, there are intentions from the Trump administration to lift these restrictions. During a recent tour of the Gulf, Trump announced $600 billion in investment commitments from Saudi Arabia, which will encompass significant orders from companies like Nvidia, Advanced Micro Devices, and Qualcomm.
### Implications of the Deal
If the agreement is completed, the UAE could potentially become a third AI superpower, alongside the U.S. and China. Nevertheless, there is some caution within the U.S. government regarding the negotiations, particularly concerning the definitions of advanced chips and security protocols.
### Chip Specifications
The chips in question may include Nvidia’s Blackwell and Rubin GPUs, both of which offer greater performance compared to the Hopper series.