US Approves Massive Semiconductor Sales to Middle East AI Giants in Stunning Policy Shift
In a shocking move, the US Department of Commerce has approved the export of advanced semiconductors to two major Gulf-backed ventures, Saudi Arabia's Humain and the United Arab Emirates' G42. The deals, valued at an estimated $1 billion, will see both companies acquire thousands of chips equivalent to Nvidia's industry-leading Blackwell graphics processing units (GPUs), marking a significant reversal from recent US policies aimed at curbing such exports.
The decision has sent shockwaves through the tech world, as Washington had previously attempted to restrict advanced chip exports to markets in the Middle East, citing concerns over diversion to China. However, the Trump administration's efforts to loosen semiconductor restrictions have largely undone this approach, paving the way for deeper investment ties between the region and the US.
The approval process comes after Saudi Crown Prince Mohammed Bin Salman made his first trip to Washington, D.C. since 2018, where he announced plans to increase Saudi Arabia's US investments to $1 trillion. This flurry of AI investments has seen both Humain and G42 embark on large-scale data center projects built around an interconnected web of US chipmakers, cloud computers, and model developers.
Nvidia chips will power the first non-US hub for Elon Musk-led startup xAI in Saudi Arabia, a 500-megawatt data center representing a major milestone in Humain's AI infrastructure expansion. The deal has also strengthened ties between the UAE and the US, with G42 Group CEO Peng Xiao describing the announcement as "a defining moment" for his company.
However, concerns remain over the potential misuse of advanced AI technology by foreign adversaries. Strict security and reporting requirements have been imposed on both companies to ensure compliance, but experts are watching closely as the full implications of this policy shift become clearer.
In a shocking move, the US Department of Commerce has approved the export of advanced semiconductors to two major Gulf-backed ventures, Saudi Arabia's Humain and the United Arab Emirates' G42. The deals, valued at an estimated $1 billion, will see both companies acquire thousands of chips equivalent to Nvidia's industry-leading Blackwell graphics processing units (GPUs), marking a significant reversal from recent US policies aimed at curbing such exports.
The decision has sent shockwaves through the tech world, as Washington had previously attempted to restrict advanced chip exports to markets in the Middle East, citing concerns over diversion to China. However, the Trump administration's efforts to loosen semiconductor restrictions have largely undone this approach, paving the way for deeper investment ties between the region and the US.
The approval process comes after Saudi Crown Prince Mohammed Bin Salman made his first trip to Washington, D.C. since 2018, where he announced plans to increase Saudi Arabia's US investments to $1 trillion. This flurry of AI investments has seen both Humain and G42 embark on large-scale data center projects built around an interconnected web of US chipmakers, cloud computers, and model developers.
Nvidia chips will power the first non-US hub for Elon Musk-led startup xAI in Saudi Arabia, a 500-megawatt data center representing a major milestone in Humain's AI infrastructure expansion. The deal has also strengthened ties between the UAE and the US, with G42 Group CEO Peng Xiao describing the announcement as "a defining moment" for his company.
However, concerns remain over the potential misuse of advanced AI technology by foreign adversaries. Strict security and reporting requirements have been imposed on both companies to ensure compliance, but experts are watching closely as the full implications of this policy shift become clearer.
! So the US is just gonna let Saudi Arabia and UAE get their hands on super powerful chips? That's wild 
. I'm interested in how this is gonna play out with China and all that drama 
. It's like, are they trying to create a new AI superpower in the Middle East or what? 
it's literally LIFE.CHANGING. like seriously, who knew making sesame seeds into a sauce could make all the difference? and now i'm thinking about how much more amazing it'll be when i can travel to asia and try all these new foods 
. The fact that Nvidia chips are powering a major data center in Saudi Arabia is just mind-blowing 
! Of course, there are concerns about security, but I think it's essential for both the US and its trading partners to take calculated risks when it comes to cutting-edge tech 
. Can't wait to see what other exciting collaborations come out of this policy shift 
!
That's some serious infrastructure investment... but are we sure it's not just another way for these companies to siphon off our tech expertise? I'm all for innovation, but let's make sure we're not trading security for growth. 
like what's next? they're gonna start exporting their oil and gas too... seriously though, it's a big deal. these companies are building massive data centers that'll be powered by Nvidia chips 
. and let's not forget about xAI - they're like the Elon Musk super cool startup 
. but what if these companies end up selling this tech to china? that's when things get complicated 
.