US Approves Billions of Dollars' Worth of Chips for Middle East A.I. Giants in Major Policy Shift
The US Department of Commerce has given the green light to two major Gulf-backed ventures, Humain and G42, to purchase billions of dollars' worth of advanced semiconductors from leading chipmaker Nvidia. The deal is part of a significant policy reversal by the Biden administration, which had attempted to curb exports of such chips to markets in the Middle East due to concerns over diversion to China.
The approvals are valued at an estimated $1 billion and allow Humain to purchase up to 35,000 chips equivalent to Nvidia's top-of-the-line Blackwell graphics processing units (GPUs). G42 will also receive a similar allocation. The new agreements come with strict security provisions to prevent the advanced technology from falling into the hands of foreign adversaries.
The move marks a major shift in US policy towards the Middle East, as the Trump administration had largely undone the Biden administration's restrictions on chip exports to the region. Nvidia CEO Jensen Huang has been a vocal advocate for loosening semiconductor restrictions and has spent much of the past year lobbying US officials to open up global exports.
Saudi Crown Prince Mohammed Bin Salman's visit to Washington last month appears to have played a significant role in securing the approvals. During his trip, the prince announced plans to increase Saudi Arabia's US investments to $1 trillion, up from a $600 billion commitment made earlier this year.
The new chip approvals will aid Humain and G42 as both embark on large-scale data center projects that rely on an interconnected web of US chipmakers, cloud computers, and model developers. The deals are part of a flurry of A.I. investments in the region, with G42 set to launch a 10-square-mile data hub in Abu Dhabi next year involving Nvidia, OpenAI, and Oracle.
The Commerce Department's approval is expected to further strengthen ties between the UAE and the US, as the Gulf nation pledged to invest in America as it scales its A.I. ambitions. "This announcement marks a defining moment for G42 and our partners as we move from planning into execution," said Peng Xiao, CEO of G42 Group.
The US Department of Commerce has given the green light to two major Gulf-backed ventures, Humain and G42, to purchase billions of dollars' worth of advanced semiconductors from leading chipmaker Nvidia. The deal is part of a significant policy reversal by the Biden administration, which had attempted to curb exports of such chips to markets in the Middle East due to concerns over diversion to China.
The approvals are valued at an estimated $1 billion and allow Humain to purchase up to 35,000 chips equivalent to Nvidia's top-of-the-line Blackwell graphics processing units (GPUs). G42 will also receive a similar allocation. The new agreements come with strict security provisions to prevent the advanced technology from falling into the hands of foreign adversaries.
The move marks a major shift in US policy towards the Middle East, as the Trump administration had largely undone the Biden administration's restrictions on chip exports to the region. Nvidia CEO Jensen Huang has been a vocal advocate for loosening semiconductor restrictions and has spent much of the past year lobbying US officials to open up global exports.
Saudi Crown Prince Mohammed Bin Salman's visit to Washington last month appears to have played a significant role in securing the approvals. During his trip, the prince announced plans to increase Saudi Arabia's US investments to $1 trillion, up from a $600 billion commitment made earlier this year.
The new chip approvals will aid Humain and G42 as both embark on large-scale data center projects that rely on an interconnected web of US chipmakers, cloud computers, and model developers. The deals are part of a flurry of A.I. investments in the region, with G42 set to launch a 10-square-mile data hub in Abu Dhabi next year involving Nvidia, OpenAI, and Oracle.
The Commerce Department's approval is expected to further strengthen ties between the UAE and the US, as the Gulf nation pledged to invest in America as it scales its A.I. ambitions. "This announcement marks a defining moment for G42 and our partners as we move from planning into execution," said Peng Xiao, CEO of G42 Group.