The Trump administration has signed deals with Middle Eastern countries, notably Saudi Arabia and the United Arab Emirates, to export advanced US-made semiconductors for artificial intelligence development. These deals aim to boost the region's AI capabilities while promoting US economic and political partnerships.
The Saudi Arabia deal allows the country to buy tens of thousands of advanced Nvidia and AMD chips, potentially worth billions of dollars. Meanwhile, the UAE deal involves selling over one million Nvidia H100 accelerators to the Emirati company G42.
However, the deals have raised concerns about potential technology diversion to China. Some US officials warn that these agreements could compromise national security by allowing China to access advanced AI technology. Others argue that the deals may shift control over AI development and deployment to Gulf countries, potentially undermining US dominance in the field.
The Trump administration has included vague conditions in the deals to prevent China from accessing the chips, but these restrictions are not legally enforceable and could be bypassed easily. As the US continues to navigate its AI policy, the implications of these deals will likely be closely watched.
