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AI chips in focus ahead of Trump’s visit to the Gulf

May 9, 2025, 9:18am EDT
gulfMiddle East
Microsoft’s Brad Smith testifies before a Senate Commerce, Science, and Transportation Committee hearing titled “Winning the AI Race: Strengthening US Capabilities in Computing and Innovation” on May 8, 2025.
Jonathan Ernst/Reuters
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The Trump administration plans to overhaul a Biden-era restriction on how many chips Gulf countries can buy from the US, as American lawmakers grapple with how to balance China risks with staying ahead in the AI race.

Saudi Arabia and the UAE, both buyers of US chipmaker Nvidia’s most advanced semiconductors, are dangling $2 trillion worth of US investments when President Donald Trump visits next week, with discussions on advanced technology high on the agenda. Both countries are facing caps on US chip exports under the proposed restrictions, set to go into effect May 15, when Trump is in the region.

Tech executives support their cause: Senators heard testimony on Capitol Hill this week from OpenAI’s Sam Altman and Microsoft’s Brad Smith on the importance of exporting American technology. “The number-one factor that will define whether the US or China wins this race is whose technology is most broadly adopted in the rest of the world,” said Smith, who also sits on the board of Abu Dhabi AI firm G42.

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Despite industry efforts, tight export controls — albeit ones that look different from the Biden administration’s — are still expected, The Wall Street Journal reported.

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