The U.S. and the United Arab Emirates (UAE) have finalized an agreement that allows Abu Dhabi to import 500,000 of Nvidia's most advanced AI chips annually, starting in 2025. This deal aims to boost the UAE's construction of data centers, which are crucial for developing artificial intelligence models.
Under the agreement, 20% of the chips (100,000 per year) will go to the UAE's tech firm G42. The remaining chips will be distributed among U.S. companies with significant AI operations, such as Microsoft and Oracle, who may also look to build data centers in the UAE. This partnership seeks to balance foreign investment with domestic development, requiring G42 to match every UAE facility with a U.S.-based data center.
The agreement also involves establishing a task force to define "advanced AI chips" and set security and compliance benchmarks. This deal positions the UAE as a major player in the global AI market and strengthens U.S.-UAE ties.