The deal could last until 2030 and affect the AI market
The United States and the United Arab Emirates are close to a deal that would allow the Emirates to import up to 500,000 advanced Nvidia artificial intelligence (AI) chips annually starting in 2025, according to people familiar with the talks.
The agreement is expected to run until at least 2027, but could be extended to 2030. About 20 percent of the chips, or about 100,000 a year, are planned to go to UAE-based tech company G42. The rest is earmarked for U.S. companies like Microsoft and Oracle, which could also build data centers in the region.
The agreement is still being negotiated, and its final terms could change. One of the sources said that dissatisfaction within the U.S. government over some aspects of the deal has grown in recent days.
The talks come as Donald Trump is visiting the Gulf States, where he has already announced $600 billion in deals with Saudi Arabia, including chip purchases from Nvidia, AMD and Qualcomm.
If the deals with the UAE and other countries in the region go through, the Middle East could become a third major hub in the global AI competition, alongside the U.S. and China. For every data center G42 builds in the UAE, it would build a similar facility in the U.S.Source: Reuters
