US Approves Billions-Dollar Chip Deals with Middle East AI Giants in Policy U-Turn
The US Department of Commerce has approved multi-billion dollar deals to sell advanced semiconductors to two major Gulf-backed ventures, Saudi Arabia's Humain and the United Arab Emirates' G42. The approvals, valued at an estimated $1 billion, mark a significant policy reversal from recent attempts by the Biden administration to curb chip exports to Middle Eastern markets.
The decision comes as the US seeks to deepen investment ties with the region, rather than restrict them. In contrast, the Trump administration has taken steps to loosen semiconductor restrictions and promote global exports.
Nvidia, the industry-leading chipmaker, will supply Humain and G42 with thousands of chips equivalent to its top-of-the-line Blackwell graphics processing units (GPUs). The new agreements come with strict provisions to ensure that advanced technology doesn't fall into the hands of foreign adversaries. The Commerce Department plans to monitor compliance on an ongoing basis.
The approval is a major win for Humain, which was founded just six months ago and has been rapidly expanding its AI infrastructure through deals with major cloud providers like Amazon Web Services, AMD, and Cisco. Nvidia chips will power the company's planned 500-megawatt data center in Saudi Arabia, the first non-US hub for Elon Musk-led startup xAI.
G42, another key player in the region, is also expanding rapidly through global AI partnerships. The company has received a $1.5 billion investment from strategic partner Microsoft and will be involved in Stargate UAE, a forthcoming 10-square-mile data hub in Abu Dhabi involving Nvidia, OpenAI, and Oracle.
The approval marks a defining moment for G42 and its partners as they move from planning to execution. CEO Peng Xiao hailed the deal as "a major milestone" that will strengthen the UAE's ties with the US and further boost its AI ambitions. The decision is expected to fuel growing investment in the region, with Saudi Crown Prince Mohammed Bin Salman announcing plans to increase US investments to $1 trillion during his recent visit to Washington D.C.
As the US continues to navigate its relationships with Middle Eastern nations, the approval of these deals highlights the country's shifting stance on advanced technology exports. The decision is likely to have significant implications for global trade and investment in the region.
The US Department of Commerce has approved multi-billion dollar deals to sell advanced semiconductors to two major Gulf-backed ventures, Saudi Arabia's Humain and the United Arab Emirates' G42. The approvals, valued at an estimated $1 billion, mark a significant policy reversal from recent attempts by the Biden administration to curb chip exports to Middle Eastern markets.
The decision comes as the US seeks to deepen investment ties with the region, rather than restrict them. In contrast, the Trump administration has taken steps to loosen semiconductor restrictions and promote global exports.
Nvidia, the industry-leading chipmaker, will supply Humain and G42 with thousands of chips equivalent to its top-of-the-line Blackwell graphics processing units (GPUs). The new agreements come with strict provisions to ensure that advanced technology doesn't fall into the hands of foreign adversaries. The Commerce Department plans to monitor compliance on an ongoing basis.
The approval is a major win for Humain, which was founded just six months ago and has been rapidly expanding its AI infrastructure through deals with major cloud providers like Amazon Web Services, AMD, and Cisco. Nvidia chips will power the company's planned 500-megawatt data center in Saudi Arabia, the first non-US hub for Elon Musk-led startup xAI.
G42, another key player in the region, is also expanding rapidly through global AI partnerships. The company has received a $1.5 billion investment from strategic partner Microsoft and will be involved in Stargate UAE, a forthcoming 10-square-mile data hub in Abu Dhabi involving Nvidia, OpenAI, and Oracle.
The approval marks a defining moment for G42 and its partners as they move from planning to execution. CEO Peng Xiao hailed the deal as "a major milestone" that will strengthen the UAE's ties with the US and further boost its AI ambitions. The decision is expected to fuel growing investment in the region, with Saudi Crown Prince Mohammed Bin Salman announcing plans to increase US investments to $1 trillion during his recent visit to Washington D.C.
As the US continues to navigate its relationships with Middle Eastern nations, the approval of these deals highlights the country's shifting stance on advanced technology exports. The decision is likely to have significant implications for global trade and investment in the region.