A multibillion-dollar agreement to supply Nvidia’s advanced AI chips to the United Arab Emirates has stalled nearly five months after being signed, frustrating CEO Jensen Huang and White House AI Czar David Sacks. Both had hoped the deal would showcase Washington’s new tech-export strategy and strengthen U.S. positioning against China in the AI race.
Info comes via a Wall Street Journal report (gated). In brief:
- The May deal promised the U.A.E. several hundred thousand Nvidia chips annually in return for Emirati investments in the U.S. But those investments have yet to materialize, leaving the agreement in limbo. Commerce Secretary Howard Lutnick, who must approve chip exports, has insisted that the Emiratis finalize their U.S. commitments first.
- National-security concerns have further complicated the talks. U.S. officials worry the U.A.E.’s close ties to China could allow the chips to indirectly benefit Beijing’s AI industry. These issues have left the deal in neutral, with its future uncertain.
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The delay undercuts U.S. efforts to showcase AI chip exports as a strategic counter to China.
