'Nvidia Chip Exports to UAE Led by Trump Stalled Over China Leak Concerns'

U.S. Government Puts Brakes on Supplying 20% of Chips to G42

The Wall Street Journal (WSJ) reported on the 16th (local time) that discussions regarding the export of Nvidia artificial intelligence (AI) chips to the United Arab Emirates (UAE), which President Donald Trump actively promoted during his Middle East trip last May, have stalled. This is because some in the U.S. government have raised concerns that advanced AI chips could be leaked to China.

According to sources, some U.S. officials have expressed concerns that China could gain access to advanced American technology, preventing both sides from finalizing the negotiations. The source added that unless the UAE agrees to conditions that address U.S. national security concerns, the gap between the two countries may not be bridged.

AFP Yonhap News

During his Middle East trip, President Trump signed a deal with the UAE to supply hundreds of thousands of Nvidia AI chips over several years. The Nvidia chips are intended for use in AI data centers and will be provided primarily to American technology companies such as OpenAI and Microsoft (MS), which operate most of the data centers. About 20% of these chips are slated to be supplied to G42, a UAE-based AI company. There is also speculation that G42 may be involved in some of the UAE data centers operated by American companies.

As a result, some U.S. government officials are concerned about G42 gaining access to Nvidia chips. They fear that China could obtain advanced Nvidia chips through G42 or through personnel and institutions within the UAE. However, if the contract is revised to prevent chips from being sent directly to G42, it could provoke backlash from the UAE.

Currently, the U.S. Department of Commerce reportedly has no plans to approve semiconductor supplies to G42. However, the possibility of future approval remains open.

Negotiations have stalled, causing friction between representatives from both sides, and industry executives seeking to expand their AI businesses overseas have also expressed frustration, according to sources. Recently, Jensen Huang, CEO of Nvidia, met with President Trump to discuss the importance of this agreement.

Nevertheless, negotiators expect that the semiconductor deal will eventually be concluded. U.S. officials, including Secretary of Commerce Howard Lutnick, met with a UAE delegation at an event in Pittsburgh the previous day. In addition, Jensen Huang, CEO of Nvidia, recently emphasized the importance of this agreement during a meeting with President Trump.

David Sacks, who oversees AI and virtual asset policy for the Trump administration, said the previous day, "If we don't provide the technology, global competitors will," and described concerns over advanced semiconductor leaks as "hugely exaggerated."

The United States prohibits the export of advanced chips to China for national security reasons. The Trump administration recently resumed exports of Nvidia's H20 chip, which has reduced performance for the Chinese market.