U.S. and UAE Forge New AI and Technology Agreement
During President Donald Trump's visit to Abu Dhabi on May 15, 2025, the United States and the United Arab Emirates (UAE) finalized a comprehensive technology framework agreement aimed at enhancing bilateral cooperation in artificial intelligence (AI) and technology security. A key provision of the agreement allows the UAE to import 500,000 of Nvidia's advanced AI chips annually, starting in 2025.
This development is particularly significant given the ongoing U.S. efforts to limit China's access to advanced semiconductors, reflecting the strategic importance of AI technology in global geopolitical alliances. (source)
The UAE has been actively seeking to develop its AI sector while maintaining relations with both the U.S. and China. Under the Trump administration, the U.S. is easing export controls to foster deeper technological partnerships with allies. The deal includes mutual commitments to safeguard technology, especially in areas linked to computing, cloud services, and chip supply chains. U.S. companies, including Nvidia, stand to benefit from the new framework, while UAE entities such as G42 and MGX have increased their U.S. AI investments, including in OpenAI and xAI. (source)
The agreement also includes provisions requiring UAE tech firm G42 to construct comparable data centers in the U.S., further strengthening bilateral technological cooperation. (source)
This agreement aligns with the UAE's ambition to become a global leader in artificial intelligence and reflects a strategic shift in U.S. policy to engage with Gulf nations in the global AI race. The deal also includes provisions requiring UAE tech firm G42 to construct comparable data centers in the U.S., further strengthening bilateral technological cooperation. (source)
The U.S.-UAE technology framework agreement marks a significant development in international AI collaboration, reflecting strategic shifts in U.S. export policies and the UAE's ambitions in the AI sector. The agreement's emphasis on technology security and mutual commitments underscores the complexities of global AI geopolitics and the importance of strategic alliances in the rapidly evolving technological landscape.
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