Trump Announces US-UAE Semiconductor Deal, Aiding Abu Dhabi for AI Development

U.S. President Donald Trump announced on Friday that the United States and the United Arab Emirates (UAE) are collaborating to enable Abu Dhabi’s access to cutting-edge American semiconductors to enhance its AI development capabilities.

During a business event aimed at strengthening ties, Trump highlighted an agreement that would pave the way for the UAE to acquire some of the world’s most sophisticated AI semiconductors produced by U.S. companies.

This significant deal likely involves a preliminary arrangement allowing the UAE to import up to 500,000 of Nvidia’s H100 chips annually, aiding the nation in developing the necessary data centers to support its AI ambitions.

The UAE has been investing heavily in AI infrastructure to achieve its goal of becoming a global technology hub, but access to critical U.S. semiconductors has been restricted due to national security concerns.

This barrier may soon be lifted, as the Trump administration is considering reversing a policy established during the Biden administration, which imposed strict export controls on advanced AI technology, even for allied nations.

Meanwhile, there are concerns among security experts and lawmakers, with some within the Trump administration reportedly worried that easing these restrictions could lead to sensitive American technology being misused by competitors, including China.