U.S. greenlights Nvidia AI chips for UAE and Saudi Arabia

The Trump administration has approved the sale of some of Nvidia’s most powerful artificial-intelligence chips to the United Arab Emirates and Saudi Arabia.

The move represents one of Washington’s largest tech decisions in the Middle East, enabling both Gulf countries to possess hardware capable of training and running state-of-the-art AI models.

U.S. officials say that these approvals entail strict security rules. The conditions are intended to prevent the chips from being sent to China or any other foreign adversary. The approvals also reflect a close partnership between Washington and the two oil-rich countries, which are both committed to becoming global leaders in AI.

U.S. tightens control as sales approved

The Commerce Department confirmed that G42 (UAE) and Humain (Saudi Arabia) will receive computer-equipped AI chips, comprising Nvidia’s GB300 processors. These are some of the most advanced chips Nvidia has ever produced. Approvals were granted only after both companies committed to “rigorous security and reporting requirements,” the U.S. added.

Officials did not provide specifics but said their focus was heavily on preventing technology transfer to high-risk countries, particularly China. That followed months of talks between Washington and the Gulf governments. The talks were part of broader bilateral arrangements that focus on economic cooperation, cybersecurity safeguards, and new commitments to better governance with technology.

G42 had already taken measures to appease American concerns. Last year, the Emirati firm committed to ceasing the use of Huawei equipment and unwinding its ties with Chinese companies. That decision paved the way for a $1.5 billion investment from Microsoft, which led to President Brad Smith joining G42’s board of directors. Saudi Arabia’s Humain has publicly stated that it will not buy Huawei gear, following U.S. expectations for secure AI development.

The UAE and Saudi Arabia are both racing to build world-class AI industries. These are the new Nvidia approvals that will provide them with the raw computing power necessary to train next-generation AI models, operate large data centers, and entice global tech partners. G42 is growing at a rapid pace across various sectors — from outer space technology to national genomics projects.

The company is constructing massive data centers and cloud infrastructure to fund AI labs and government projects all over the Emirates. Humain, in Saudi Arabia, is working towards its own national strategy. It plans to create giant “AI factories” to house hundreds of thousands of GPUs. The facilities are designed to provide power for projects in healthcare, higher education institutions, freight delivery services, transportation authorities, and government agencies.

The Nvidia AI chips approvals come as Saudi Arabia’s Crown Prince Mohammed bin Salman strengthens ties with the Trump White House. The UAE, meanwhile, committed earlier this year to spend $1.4 trillion on the American side, further cementing its strategic alliance with Washington.

U.S. balances innovation and national security

Inside Washington, the decision has inspired debate. Many officials in the Trump administration view the sale as a response to China’s growing presence in the Middle East. U.S. companies, such as Nvidia, Microsoft, and Oracle, can anchor the region’s AI buildout. It keeps Gulf nations inside America’s technological infrastructure.

Nevertheless, some national security officials remain skeptical, as they worry that even with heavy monitoring, powerful AI chips can still be misused. They also worry that Beijing might someday gain access to data centers or research facilities located in the Gulf through commercial, scholarly, or hidden connections.

Nonetheless, the American administration believes that strict operational conditions will ensure that the technology remains secure.

Washington’s shift also indicates, in effect, that AI hardware is becoming increasingly part of Washington’s diplomatic toolkit. Gulf nations seek to develop AI capacity, while the United States aims to exert influence, maintain oversight, and foster economic cooperation.

Nvidia, meanwhile, retains access to two of the world’s fastest-growing markets for high-performance computing. G42 and Humain approvals may be only the start. The two countries are expected to demand even more chips as they seek to emerge as global leaders in artificial intelligence, data infrastructure, and advanced technology manufacturing.