Chip Distribution and Recipients
Under the agreement, Abu Dhabi-based AI firm G42 will receive 100,000 chips annually (20% of the allocation), while U.S. companies including Microsoft and Oracle building Gulf data centers will receive the remaining 400,000 processors. The chips include Nvidia’s current Blackwell GPUs and future Rubin generation processors, representing three to four times the computing power previously permitted under Biden administration restrictions.
The deal requires G42 to build one U.S. data center for every facility constructed in the UAE, ensuring reciprocal American infrastructure investment. First shipments began in October 2025, with G42 Chief Executive Peng Xiao confirming deliveries would continue through early 2026.
Political Controversy and Investment Timing
The chip approval followed a $500 million investment by Sheikh Tahnoon bin Zayed Al Nahyan, the UAE’s national security advisor, in World Liberty Financial, a cryptocurrency venture linked to the Trump family. Aryam Investment, a company backed by Sheikh Tahnoon, acquired a 49% stake in World Liberty in late 2024, months before the chip deal received U.S. government approval in May 2025.
Sen. Elizabeth Warren introduced a resolution in February 2026 calling the arrangement “corruption, plain and simple” and demanding reversal of the chip export authorization. The resolution is expected to face procedural blocking in the Senate. Donald Trump Jr. denied any connection between his family’s business dealings and the chip agreement.
Security Concerns and Safeguards
Previous U.S. administrations restricted advanced chip exports to the UAE citing concerns about technology diversion to China. The Trump administration approved the deal after G42 removed Chinese networking equipment from its operations and strengthened partnerships with American vendors including Cisco, AMD, and Qualcomm.
The agreement establishes a working group to define “advanced AI chips” and determine security requirements for technology transfers. As part of broader UAE commitments, officials pledged $1.4 trillion in U.S. investments over the next decade during a March 2025 Washington visit.
Regional AI Infrastructure Development
The chip allocation supports G42’s construction of a 5-gigawatt data center primarily serving OpenAI, along with Microsoft and Oracle facilities in Abu Dhabi. The authorization marks a policy shift from national export caps toward bilateral frameworks where allies commit to U.S.-operated cloud infrastructure in exchange for advanced hardware access.
President Trump announced an additional $600 billion in Saudi investment commitments during his May 2025 Gulf tour, including chip orders from Nvidia, AMD, and Qualcomm.
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