The US government gave Microsoft the green light to ship Nvidia AI chips to the United Arab Emirates, the first such approval after the countries struck a deal over the advanced technology in May.
The exports mark a win for the Gulf’s lofty AI ambitions, as some in Washington worry the partnership could backfire given the UAE’s close links to China. The debate reflects how Nvidia — on a deal-making spree in recent months — is caught in the middle of the US-China rivalry.
The American chip giant wants Washington to allow sales of a new generation of AI chips to China, but President Donald Trump reportedly rejected that request, siding with China hawks who argue the exports threaten national security.