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US Finalizes AI Chip Export Deals with Gulf Nations, Raising Security Concerns

The Trump administration's reversal of export restrictions enables multi-billion-dollar AI partnerships with Saudi Arabia and UAE, as critics warn of potential technology diversion to China.

Men use their phones during the Saudi-US Investment Forum, in Riyadh, Saudi Arabia, May 13, 2025.
US President Donald Trump, Saudi Crown Prince Mohammed Bin Salman and others listen during a Saudi-US investment forum at the King Abdul Aziz International Conference Center on May 13, 2025, in Riyadh, Saudi Arabia.
People attend the Saudi-U.S. Investment Forum, in Riyadh, Saudi Arabia, May 13, 2025.

Overview

  • The US has formalized major AI chip export agreements with Saudi Arabia and the UAE, including deals with Nvidia, AMD, and Qualcomm, following President Trump’s visit to the region.
  • Saudi Arabia launched a state-backed AI startup, Humain, which secured commitments for hundreds of thousands of advanced chips from Nvidia.
  • The US and UAE announced plans to build a 5-gigawatt AI data center complex in Abu Dhabi, which will be the largest outside the United States.
  • The Trump administration rescinded the Biden-era 'AI Diffusion Rule,' allowing unrestricted sales of advanced semiconductors to Gulf nations, sparking concerns over potential Chinese access to sensitive technology.
  • Leading Democrats and security experts have raised alarms about the lack of safeguards in these deals, warning of risks to US national security and the possibility of Gulf nations developing independent AI capabilities.