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Is Trump Jeopardizing America's Technological Future with AI Chip Deals in the Middle East?

Major agreements to supply advanced AI chips to the UAE and Saudi Arabia have sparked debate within the U.S. government about the implications of exporting cutting-edge AI technology abroad.

David Lee
Published • 3 MIN READ
Is Trump Jeopardizing America's Technological Future with AI Chip Deals in the Middle East?
During his initial diplomatic trip abroad, President Trump visited Abu Dhabi’s Sheikh Zayed Grand Mosque, highlighting his interest in exporting the U.S. AI industry internationally.

Over a three-day visit to the Middle East, President Donald Trump and his Silicon Valley envoys have transformed the Persian Gulf region from an AI novice into an emerging force in artificial intelligence.

An extensive agreement was reached with the United Arab Emirates to supply hundreds of thousands of Nvidia’s most advanced chips annually to build one of the world’s largest data centers, according to sources familiar with the discussions. Shipments are set to start this year, with the majority of chips destined for U.S.-based cloud service providers and approximately 100,000 allocated to G42, an Emirati AI firm.

The administration announced the deal alongside plans for a new AI campus in Abu Dhabi, powered by 5 gigawatts of electricity. This would mark the largest project of its kind outside the United States and is expected to help American companies serve customers across Africa, Europe, and Asia. Specific details regarding the chips remain undisclosed, and it is unclear whether the terms might still be modified.

In parallel with Trump’s regional tour, the U.S. secured multimillion-dollar agreements to export advanced Nvidia and AMD chips to Saudi Arabia. Additionally, ongoing negotiations between the U.S. and Saudi Arabia aim to finalize a more substantial contract for AI technology, according to several individuals involved in the talks.

These AI-related agreements have raised questions both inside and outside the administration. Some are asking whether the Trump administration, in its eagerness to forge deals in a region where the president and his family have financial interests, might be outsourcing the future of the AI industry to the Middle East.

This debate reflects the broader divisions surrounding AI policy within the administration. The agreements were brokered in the Middle East by David Sacks, the government’s AI czar, and Sriram Krishnan, his lead policy advisor on AI; both are longtime venture capitalists. Prominent figures from the AI sector, including OpenAI’s Sam Altman and Nvidia’s Jensen Huang, have also engaged in discussions that have continued alongside the president’s recent trip.

David Lee
David Lee

David covers the dynamic world of international relations and global market shifts, providing insights into geopolitical strategy and economic interdependence.

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