DUBAI : Announced during Trump’s visit to Abu Dhabi in May, the agreement was billed as a landmark in America’s AI export policy, aimed at strengthening ties with allies while maintaining a competitive edge over China. The deal would have given the UAE access to up to 500,000 of Nvidia’s most advanced AI chips annually, a sharp departure from earlier restrictions under the Biden administration.
But progress has ground to a halt under Commerce Secretary Howard Lutnick, who is demanding the Emiratis finalize significant U.S. investments before any chip shipments are authorized. The hardline stance has rattled Nvidia executives, including CEO Jensen Huang, and frustrated White House AI Coordinator David Sacks, both of whom had expected swift execution of the agreement.
Nvidia leaders have privately voiced concerns over Lutnick’s tough tactics, sources said. The secretary, who initially supported the deal, has since tightened conditions, citing security concerns over potential technology transfers given the UAE’s geographic proximity to China.
UAE officials have pledged robust safeguards to prevent misuse, but the stalemate underscores broader tensions in balancing economic ambition with national security risks. It also highlights the sharp shift in U.S. export policy, from Biden-era controls that curbed Middle East access to cutting-edge semiconductors, to Trump’s more aggressive strategy of leveraging technology exports for strategic partnerships.
The U.S.-UAE AI chip deal with Nvidia has stalled amid demands for Emirati investments. Commerce Secretary Howard Lutnick's security concerns have halted progress, frustrating Nvidia and White House officials. The situation underscores the challenges of balancing economic interests with national security in U.S. export policy.