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1h ago

Nvidia–UAE AI Chip Deal Stalled as U.S. Ties Export Approval to Investments and China Risks

White House envoys are pressing Abu Dhabi to close on promised U.S. funding to unlock export licenses.

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Overview

  • The multibillion-dollar agreement announced in May has been stuck for months as Emirati investment commitments tied to the deal have not materialized.
  • Commerce Department sign-off is required for the high-performance AI chips, with Secretary Howard Lutnick conditioning approval on finalized U.S. investments and flagging the UAE’s ties to China.
  • Nvidia CEO Jensen Huang has privately expressed frustration over the delays, though a senior company executive said the firm is not alarmed.
  • A White House spokesman said AI adviser David Sacks and Secretary Lutnick are working to get deals done as part of the President’s AI agenda.
  • One official said at least $1 billion in investments and chips could still be exchanged by year-end, and separate reports say TSMC is weighing a UAE gigafab subject to U.S. regulatory clearance.