In a strategic move to bolster economic and technological ties, U.S. President Donald Trump has secured a monumental $280 billion deal with the United Arab Emirates (UAE) during his visit, marking the conclusion of his Middle East tour. This deal includes substantial AI cooperation and investments, signaling a significant shift in U.S. export policy concerning advanced AI semiconductors.
The White House confirmed that the agreement involves allowing the UAE to import up to 500,000 advanced AI semiconductors annually from U.S. company Nvidia. In exchange, the UAE has committed to investing in U.S. data centers and enhancing its national security measures to prevent the misuse of U.S. technology. This arrangement reflects a relaxation of the previous restrictions imposed under the Biden administration, which aimed to prevent the diversion of U.S. AI semiconductors to China.
Moreover, a large-scale AI campus, featuring a 5-gigawatt data center, is set to be established in Abu Dhabi by G42, with cooperation from multiple U.S. companies. This initiative underscores the UAE's commitment to reducing its reliance on Chinese technology and investment in its AI sector, aligning with U.S. interests.
The agreement is part of a broader effort to strengthen bilateral ties, as evidenced by the UAE's commitment to invest $14.5 billion in Boeing and GE Aerospace for new aircraft, as well as a $4 billion investment in an aluminum smelter project in Oklahoma. These ventures are expected to enhance the U.S. critical mineral supply chain and boost American aerospace capabilities.
Additionally, ExxonMobil, Occidental Petroleum, and EOG Resources will partner with the Abu Dhabi National Oil Company to pursue a $60 billion expansion in oil and natural gas production, further solidifying energy cooperation between the two nations.
This landmark deal not only underscores the strategic importance of the UAE in the U.S.'s Middle Eastern policy but also highlights Trump's focus on strengthening economic and technological alliances with key partners in the region.
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