[News] Trump Reportedly Weighs Loosening NVIDIA Chip Curbs for UAE Amid Intel-Linked Investment Talks

According to Bloomberg, sources say the U.S. is considering loosening restrictions on NVIDIA chip sales to the United Arab Emirates, with President Donald Trump potentially set to unveil a bilateral semiconductor agreement during his upcoming visit to the Gulf region.

The report notes that Trump is scheduled to visit the UAE as part of a broader Middle East tour from May 13 to 16, and will therefore be in the region on May 15—the same day that the AI diffusion rule takes effect.

As noted by the report, citing sources, although no final decision has been made, discussions on easing AI chip restrictions for the UAE have been gaining traction within both the Commerce Department and the White House.

The UAE is currently classified under Tier 2 of the U.S. AI diffusion rule, which limits the number of advanced processors it can import, as noted in a previous Bloomberg report. In addition, since 2023, the U.S. has also required licenses for NVIDIA chip exports to the UAE and other Gulf nations, citing concerns the hardware could be diverted to China, as Bloomberg notes.

UAE’s U.S. Investment Plans

The potential easing of AI chip restrictions for the UAE may be linked to its pledge to invest up to USD 1.4 trillion over the next decade in the U.S., as Sheikh Tahnoon bin Zayed Al Nahyan—the UAE’s national security adviser and brother of the president—visited Washington in March and reportedly made those investment commitments during the trip, according to Bloomberg.

Furthermore, Silver Lake—backed by Abu Dhabi’s Mubadala Investment Co.—acquired a majority stake in Intel’s Altera unit, a move that reportedly helped the UAE secure a more favorable position, according to sources cited by Bloomberg. Some Trump officials have also proposed seeking greater Emirati investment in Intel, the sources added.

Trump Reportedly Weighs AI Export Rule Overhaul 

According to Reuters, the Trump administration is reportedly considering scrapping the tiered AI export system in favor of a global licensing framework based on government-to-government agreements.

Meanwhile, NVIDIA has emerged as a vocal critic of the AI diffusion rule. CEO Jensen Huang has urged the administration to revise the policy, according to a Reuters report citing Bloomberg. On Thursday, NVIDIA publicly challenged Anthropic after the Amazon-backed startup called for stricter export controls, CNBC notes.

Read more

• [News] Trump Reportedly Plans Overhaul of Biden-Era AI Export Tiers in Favor of Direct Country Agreements
• [News] Trump’s Planned H20 Chip Curbs Reportedly Put on Hold after NVIDIA Pledges New AI Investments

(Photo credit: The White House)