UAE Official Seeks U.S. Approval for Nvidia AI Chip Purchases

GuruFocus.com
03-14

Sheikh Tahnoon bin Zayed Al Nahyan, the United Arab Emirates' national security adviser, is traveling to the United States to seek approval for the purchase of additional artificial intelligence accelerators from Nvidia (NVDA, Financials) and other U.S. chip manufacturers, according to sources familiar with the matter, Bloomberg reported.

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Planned talks with top Trump administration officials including Commerce Secretary Howard Lutnick, Treasury Secretary Scott Bessent, and National Security Advisor Mike Waltz comprise the visit. Whether Sheikh Tahnoon will see President Donald Trump is still unknown.The proposal coincides with continuing U.S. limits on AI chip exports to several Middle Eastern countries. The Biden government banned the sale of sophisticated electronics, including Nvidia's high-performance AI processors, in August 2023. Nvidia revealed the limits in a Securities and Exchange Commission regulatory disclosure.According to reports, Sheikh Tahnoon's journey fits conversations within the Trump administration about maybe loosening these limitations. Though no ultimate decision has been taken, the policy review might result in revisions to the present restrictions on AI chip exports.Nvidia has maintained commercial contacts in the area despite the limitations. September saw the corporation announce a partnership with artificial intelligence startup G42 located in the United Arab Emirates to improve global weather prediction and climate technologies.The UAE is promoting itself as a regional powerhouse for sophisticated computing by making large expenditures in artificial intelligence infrastructure. Supported by UAE investment company MGX, the nation started "Project Stargate," in January, to increase AI capabilities and create data centers with an eye on artificial intelligence.With Washington restricting the sale of sophisticated technology to foreign countries, the conversations between Sheikh Tahnoon and U.S. officials reflect the global AI chip business under growing geopolitical scrutiny.

This article first appeared on GuruFocus.

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