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U.S. Pauses Deliveries of Nvidia AI Chips to UAE Over Security Safeguards

U.S. officials have halted chip approvals to G42 pending revised export controls addressing Chinese access concerns.

Jensen Huang, Nvidia’s CEO, in June at the VivaTech conference in Paris.

Overview

  • The Commerce Department has suspended approvals for shipments of high-end Nvidia AI chips to Abu Dhabi’s G42 until tighter security measures are finalized.
  • Concerns center on the risk that China could obtain advanced U.S. technology through Gulf intermediaries such as G42.
  • The nonbinding agreement announced in May by President Trump and Nvidia CEO Jensen Huang envisions hundreds of thousands of chips powering UAE AI data centers.
  • Commerce Secretary Howard Lutnick and UAE Ambassador Yousef Al Otaiba say they remain confident the deal will proceed on schedule once new safeguards are in place.
  • The stalled negotiations highlight the broader challenge of balancing U.S. commercial interests with national security in AI export policy.