In May 2025, President Donald Trump announced in Abu Dhabi that the United Arab Emirates (UAE) would receive 500,000 Nvidia AI chips annually under a $10 billion deal. Nearly five months later, the deal remains stalled as Commerce Secretary demands U.S. investments first, frustrating CEO Jensen Huang.
According to a WSJ report, Jensen Huang and White House AI and crypto czar David Sacks are disappointed by the delays. Jensen Huang and David Sacks view the UAE agreement as key to staying ahead of China in the AI race.
President Trump secures $200 billion U.A.E. chip pact
A White House report showed that President Trump had negotiated more than $200 billion in U.S.-UAE agreements. The trade agreements are built on $1.4 trillion investment framework that will support the U.S. growth in AI infrastructure, semiconductors, energy, quantum computing, biotechnology, and manufacturing.
The President announced that the U.S. and the United Arab Emirates had agreed on a framework that would enable Abu Dhabi to purchase advanced American AI chips. The chips are expected to be produced by tech giants like Nvidia.
The UAE agreed to invest in the U.S in exchange for up to 500,000 AI chips annually from 2025 to 2027. According to the agreement, the UAE will invest $1 billion in U.S.-based projects to construct and finance data centres for training AI models. Nvidia is expected to export $7 billion worth of advanced chips in return, with most of them going to U.S. companies operating in the Middle East.
Jensen Huang stated that the UAE is progressing with its arrangement by exchanging $1 billion worth of Nvidia processors for a 1:1 ratio of the country’s investment in the United States. Huang also revealed that at least $1 billion worth of Nvidia chips will be shipped from the United Arab Emirates to the United States in return. However, the agreement depends largely on approval from Commerce Secretary Howard Lutnick. U.S.
According to the Congressional Research Service, Intelligence Agencies, Regulators, and Congress have taken notice of Emirati-based corporations partnering with other tech businesses from China.
For instance, the report revealed that G42, a technology group that invents visionary artificial intelligence in Abu Dhabi, used Huawei hardware banned in the U.S for its data centers. According to the report, G42’s use of Huawei hardware prompted U.S. officials to warn the UAE government that it must decide whether to collaborate with Chinese companies or with U.S. and other Western-based companies in the field of Artificial Intelligence.
U.S officials have reportedly discussed denying G42 Nvidia chips after the discovery. The Abu Dhabi-based AI company was supposed to have direct access to approximately 20% of the 500,000 Nvidia semiconductors under the arrangement.
Nvidia challenges U.S export rules as chip sales face 15%
The White House is reportedly facing growing tension with Nvidia over trade regulatory policies imposed on U.S. export controls on semiconductors. The Biden Administration imposed these restrictions in October 2022 in an effort to prevent China from acquiring advanced semiconductors, which are essential for the development of AI.
Nvidia collaborated with Lutnick to obtain the necessary licenses to export chips to China. In August, Nvidia and AMD agreed to allocate a 15% share of their revenues from chip sales to the U.S. government in exchange for an export license to China. Doug Jacobson, an international Trade Attorney, argued that 15% is an illegal export tax. Nvidia responded in a press release that the company adheres to the rules set by the U.S. government for its participation in global markets.
Nvidia reported in July that strict export regulations on its chip shipments would cost the business an additional $5.5 billion. The strict export regulations were enforced after the tech firm announced plans to build AI servers worth $500 billion in the U.S. over the next four years with help from partners such as TSMC.
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Source: https://www.cryptopolitan.com/nvidia-ceo-frustrated/
