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UAE to Build World’s Largest AI Campus Outside U.S. Under Landmark Trump-Era Deal

The United Arab Emirates (UAE) and the United States have signed a historic technology agreement to construct the largest artificial intelligence campus outside the U.S., signaling a major policy shift that clears the way for the UAE to access advanced U.S. AI chips, particularly from Nvidia.

Finalized during President Donald Trump’s visit to Abu Dhabi, the deal marks a significant easing of restrictions that previously barred such transfers over U.S. concerns about China’s access to critical technologies.

Key Components of the Agreement:

  • The AI campus, covering 10 square miles (25.9 km²), will be located in Abu Dhabi and have 5 gigawatts of power, enough to support 2.5 million Nvidia B200 chips, per estimates by Rand Corporation analyst Lennart Heim.

  • The facility will be developed by G42, a UAE state-backed firm, but operated and managed by American companies, ensuring compliance with U.S. security protocols.

  • The UAE has committed to build or finance data centers in the U.S. that are at least as powerful as those in the UAE, reinforcing reciprocal investment and security alignment.

Chip Access and U.S. Industry Involvement:

  • Sources say the UAE could be permitted to import up to 500,000 of Nvidia’s most advanced chips annually beginning in 2025.

  • The agreement includes support from U.S. tech giants:

    • Amazon Web Services will collaborate on cybersecurity and cloud adoption.

    • Qualcomm will help establish an AI engineering center in the region.

American companies will operate the data centers and offer American-managed cloud services throughout the region,” said U.S. Secretary of Commerce Howard Lutnick.

Strategic Implications:

The deal represents a recalibration of UAE tech policy, allowing it to:

  • Deepen ties with the U.S. on strategic technologies like compute infrastructure and cloud services

  • Maintain economic ties with China, while minimizing reliance on Chinese hardware in critical infrastructure

It doesn’t mean abandoning China,” said Mohammed Soliman of the Middle East Institute, “but recalibrating tech strategy to align with U.S. standards where it matters most.”

Geopolitical Context:

  • Under Biden, export controls were imposed to prevent chip diversion to China, limiting UAE access.

  • The Trump administration has reversed course, with AI czar David Sacks stating the Biden-era rules were “never intended to capture friends, allies, or strategic partners.”

  • In recent months, G42 and MGX have cut Chinese hardware use and divested from Chinese holdings to meet U.S. compliance conditions.

Still, Huawei and Alibaba Cloud remain active in the UAE, and past AI chip smuggling routes through Singapore, Malaysia, and the UAE have raised flags among U.S. regulators.

This deal marks a strategic turning point not just for U.S.-UAE relations, but for the global AI infrastructure race, cementing the UAE’s ambition to become a top-tier AI superpowerwith Washington’s blessing.

U.S. and UAE Finalize Tech Security Agreement Amid AI Expansion Plans

The United States and United Arab Emirates have finalized a technology framework agreement, expected to be signed Thursday during President Donald Trump’s final stop on his Gulf tour, according to a source familiar with the matter. The deal emphasizes mutual commitments to technology security, a key concern amid growing geopolitical tensions and the global AI arms race.

Strategic Significance:

The agreement is seen as a major diplomatic and technological milestone for the UAE, which aims to position itself as a global leader in artificial intelligence and digital innovation. For Washington, the deal strengthens control over the flow of advanced U.S. technologies, particularly AI chips, to friendly nations while keeping them out of adversarial hands like China’s.

AI Chip Context:

  • The tech pact closely follows reports that the U.S. and UAE are nearing a separate agreement allowing the UAE to import 500,000 of Nvidia’s most advanced AI chips annually starting in 2025.

  • The chips, likely from Nvidia’s Blackwell or forthcoming Rubin series, would significantly boost the UAE’s AI data center infrastructure, including projects linked to UAE-based firm G42.

  • The import deal would include provisions requiring reciprocal infrastructure investment in the U.S., reinforcing bilateral cooperation.

Broader Implications:

The finalized framework reinforces the U.S. strategy of deepening tech ties with Gulf allies while maintaining tight export controls to prevent sensitive technologies from reaching China. It also enhances the UAE’s reputation as a trusted AI development hub, backed by Western partnerships.

Neither the White House, the U.S. Commerce Department, nor the UAE or Chinese foreign ministries responded to requests for comment.

This agreement could accelerate the UAE’s emergence as a third global center for AI innovation, alongside the U.S. and China, reshaping the landscape of AI development and governance in the years to come.

U.S. Nears Deal to Allow UAE Import of 500,000 Nvidia AI Chips Annually Starting 2025

The United States is moving toward a landmark agreement with the United Arab Emirates (UAE) that would allow the import of 500,000 of Nvidia’s most advanced AI chips per year, starting in 2025, according to two sources familiar with the matter. The draft deal, still under negotiation, could significantly boost the UAE’s ambitions to become a global AI hub and represents a strategic shift in U.S. technology export policy.

Under the current version of the agreement:

  • 100,000 chips per year (20%) would be allocated to G42, a major UAE tech firm backed by Abu Dhabi’s sovereign wealth fund Mubadala and chaired by national security adviser Sheikh Tahnoon bin Zayed Al Nahyan.

  • The remaining 400,000 chips would go to U.S. tech giants like Microsoft and Oracle, which are expected to build or expand data centers in the UAE.

The deal could triple or quadruple the AI computing power previously accessible to the UAE under Biden-era restrictions. However, one source noted that the agreement has encountered growing opposition in Washington in recent days, particularly over concerns the chips might eventually benefit China or other adversarial actors.

Strategic and Political Implications:

  • The deal would elevate the Gulf region, especially the UAE, as a third major AI power center alongside the U.S. and China.

  • The agreement reportedly includes a reciprocal clause: for every AI facility G42 builds in the UAE, it must construct a similar one in the U.S., promoting bilateral infrastructure investment.

  • The definition of what constitutes an “advanced AI chip” (e.g., Nvidia’s Blackwell or future Rubin GPUs) will be established later by a dedicated working group, which will also set security parameters.

Trump and Gulf AI Expansion:

Coinciding with the deal, former U.S. President Donald Trump, during his tour of the Gulf this week, announced $600 billion in tech commitments from Saudi Arabia, including chip deals with Nvidia, AMD, and Qualcomm. The Trump administration also plans to rescind Biden-era AI chip export restrictions, accelerating tech collaboration with Gulf nations.

Nvidia, G42, the White House, and the U.S. Commerce Department all declined to comment publicly. However, if finalized, the deal would mark one of the most significant U.S. AI technology transfers to the Middle East to date.