A rapidly shifting landscape in the global technology sector has seen the US government approve the export of advanced semiconductors to major artificial intelligence initiatives in Saudi Arabia and the United Arab Emirates. As global competition intensifies, both Gulf nations are drawing significant attention from investors and industry leaders eager to expand data center infrastructure and AI capabilities. The decision by US authorities arrives at a time when security and semiconductors dominate international tech discussions, putting American chipmakers in a pivotal position to shape foreign partnerships while ensuring oversight.
Export restrictions on AI chips to the Middle East were tightened in recent years over concerns that advanced technology could inadvertently benefit rivals such as China. Previous announcements signaled hesitancy around technology transfers to Gulf states, especially involving Nvidia’s cutting-edge GPUs, which are central to modern AI growth. With the latest approval, the US seeks a more balanced role—encouraging foreign investment and innovation while monitoring technology flow. Compared to earlier coverage, this latest step underscores a shift toward strategic engagement over blanket restrictions.
How Will the New Export Approvals Impact Gulf AI Ambitions?
The US Department of Commerce has cleared Saudi Arabia’s Humain and the UAE’s G42 to each acquire the equivalent of up to 35,000 Nvidia Blackwell GPUs, with transaction values estimated at $1 billion per company. These exports aim to bolster AI data center growth and promote interconnected ventures spanning US, Gulf, and global partners. Explicit provisions are attached to the deals, with US officials stating,
“The approvals are conditioned on both companies meeting rigorous security and reporting requirements,”
to address national security concerns and compliance.
What Partnerships are Taking Shape in the Gulf Tech Sector?
Humain, a newly established Saudi enterprise, has formed partnerships with Amazon Web Services, AMD, and Cisco, targeting large-scale expansion of AI infrastructure. One centerpiece involves building a 500-megawatt data center in Saudi Arabia for xAI, the startup led by Elon Musk, which will utilize Nvidia’s processors. Jensen Huang, Nvidia’s CEO, emphasized the collaborative nature of these projects and stated,
“Because of our deep partnership with Elon and xAI, we were able to bring that opportunity to Saudi Arabia.”
G42 is setting its sights on a massive Abu Dhabi data hub, also partnering with Nvidia, OpenAI, and Oracle, and recently secured $1.5 billion from Microsoft.
What Are the Broader Investment and Geopolitical Implications?
The announcement of high-value semiconductor exports coincided with Saudi Crown Prince Mohammed Bin Salman’s visit to Washington, where he pledged to raise Saudi investments in the US to $1 trillion. Meanwhile, G42’s CEO, Peng Xiao, signaled the UAE’s evolving AI strategy and deepening engagement with American firms. He shared,
“This announcement marks a defining moment for G42 and our partners as we move from planning into execution.”
The stricter reporting standards suggest the US intends to carefully oversee how advanced technology is deployed in new international markets, balancing strategic interests and security assurances.
Both Saudi Arabia and the UAE are accelerating investment in high-stakes AI infrastructure to position themselves as technology leaders in the region. The involvement of global tech firms such as Nvidia, Oracle, and Microsoft signals ongoing interest in partnering with Gulf-backed ventures. These collaborations are set to shape the competitive landscape, determining how access to elite technology influences international alliances and economic priorities.
The approval of these significant AI chip exports signals a careful recalibration of US policy—opening doors to vital markets while managing oversight. Unlike previous blanket restrictions, the current strategy is defined by conditional, monitored engagement with trusted partners. For industry stakeholders, understanding shifting regulations and building transparent relationships becomes crucial for future success. Those following semiconductor trends should closely watch how these Gulf partnerships influence both global supply lines and the security frameworks surrounding next-generation technology.
