A Massachusetts senator pushed for a vote on Thursday to stop the sale of hundreds of thousands of advanced computer chips to the United Arab Emirates, saying the deal poses risks to American security interests.
Elizabeth Warren, a Democratic senator, will introduce a measure asking her colleagues to oppose the transaction and demand it be reversed. Her move follows recent reporting that a prominent UAE figure bought a large share in a Trump family business venture shortly before the president took office.
Investment in Trump venture came before chip approval
The Wall Street Journal reported last week that Sheikh Tahnoon bin Zayed Al Nahyan, sometimes called the “Spy Sheikh,” acquired a 49% ownership position in World Liberty Financial, a cryptocurrency company tied to the Trump family. The purchase happened just four days before Donald Trump’s inauguration as president. About $187 million went to Trump family businesses through this arrangement.
The chip transaction was approved several months after that investment took place. Warren and other critics say the timing raises questions about whether the two deals are connected. Past administrations warned against sending these chips to the UAE because officials worried they might end up in China’s possession.
“Why in the world was Donald Trump trying to ship off our state-of-the-art chips to the UAE, and China, when American startups, universities, and small businesses need them here at home?” Warren said. “Well, now we know that the UAE greased the skids months earlier when it secretly agreed to pour hundreds of millions of dollars into a Trump family crypto venture just four days before President Trump’s inauguration.”
The agreement would send 500,000 chips made by Nvidia to the UAE each year. These include the company’s most sophisticated products. The United States and China are competing for leadership in artificial intelligence technology, and American officials closely guard access to advanced equipment.
G42, an artificial intelligence company owned by Tahnoon, will receive the chips under the deal. Intelligence officials have previously expressed concern about G42’s past connections to Chinese technology companies, including Huawei.
Warren’s resolution, labeled S. Res. 598, has backing from three other Democratic senators: Chris Van Hollen of Maryland, Andy Kim of New Jersey, and Elissa Slotkin of Michigan. If approved, it would formally state that the Senate opposes Trump’s choice to permit the chip sale and wants the decision undone.
Documents show the investment agreement was signed on January 16, 2025. The first payment of $250 million included $187 million that went to two limited liability companies owned by the Trump family.
The UAE investment came through Aryam Investment 1, which is run by executives from G42. The UAE government has promised $1.4 trillion in investments in American infrastructure projects. However, critics argue that selling Blackwell-architecture chips represents a major shift that weakens America’s technology advantage.
Warren, who leads Democrats on the Senate banking committee, said that “Trump is profiting from decisions that make it easier for countries like China to get their hands on some of our most sensitive and advanced technology.”
She also said that “Congress needs to grow a spine. We cannot allow American national security to be sold to the highest bidder.”
Resolution faces uncertain prospects in Senate
The resolution faces long odds in the Senate, where any single member can block such measures from getting a vote. However, it could create uncomfortable situations for Republican senators who have also warned about protecting American chip technology from China.
Trump administration officials have said nothing improper occurred. When asked about the chip deal this week, Trump responded, “Well, I don’t know about it.”
White House officials have stated that the president handed business operations to his children to prevent conflicts of interest. The resolution asks for Commerce Secretary Howard Lutnick to testify about what security measures are attached to the Nvidia export permits.
Source: https://www.cryptopolitan.com/senator-blocks-chip-sale/
