Report: US to allow UAE to import millions of Nvidia’s AI chips
According to the draft agreement, 20% of the chips, or 100,000 per year, may go to UAE’s tech firm G42. The remaining are likely to be divided among American firms with major AI operations, Reuters reports.
The US has a preliminary agreement with the UAE to allow the Arab country to import 500,000 of Nvidia’s most advanced AI chips annually, according to a report by Reuters.
The agreement, which will come into effect this year, will last through 2027 and there are chances it could be in place until 2030, sources told Reuters.
According to the draft agreement, 20% of the chips, or 100,000 per year, may go to UAE’s tech firm G42. The remaining are likely to be divided among American firms with major AI operations that might also consider building data centers in the UAE.
However, the deal could face political opposition within the US.
Abu Dhabi sovereign wealth fund Mubadala, the UAE’s ruling family and US private equity firm Silver Lake hold stakes in G42, the report said.
The Biden presidency had sought to restrict AI chip exports to stem the flow of the most advanced processors to keep them from reaching China.
Nvidia is also providing chips to Saudi Arabian AI firm Humain for up to a 500 megawatt data center buildout over the next five years. The data center will be powered by Nvidia’s most advanced GPUs over the next five years.
Nvidia CEO Jensen Huang signed the chip supply deal for the GB300 Blackwell AI model with Humain. The total contract value is estimated at approximately USD 857 million.
“Together with Humain, we are building AI infrastructure for the people and companies of Saudi Arabia to realize the bold vision of the Kingdom,” Jensen Huang said.