Overview

• The Trump administration has replaced the Biden-era AI Diffusion Rule with targeted export restrictions, banning Huawei Ascend chip use globally and addressing Chinese diversion tactics.
• The U.S. and UAE have finalized a deal allowing the import of 500,000 Nvidia AI chips annually, alongside plans for a 25.9 sq km AI campus in Abu Dhabi managed by U.S. firms.
• Saudi Arabia has committed $600 billion to AI infrastructure, including large-scale chip purchases from Nvidia, AMD, and Qualcomm, as part of broader U.S.-Saudi tech agreements.
• The Gulf region is emerging as a third global AI hub, with U.S. companies like Nvidia and Amazon expanding operations and investments in the UAE and Saudi Arabia.
• Senate Minority Leader Chuck Schumer and others have raised national security concerns about potential Chinese access to U.S. chip technology through these deals.