The United States has granted Nvidia Corp. approval to sell its advanced AI chips to the United Arab Emirates (UAE), a significant move to support the Gulf nation’s AI development goals, as reported by Bloomberg and Reuters on October 8, 2025. For tech investors, AI developers, and policy analysts searching Nvidia AI chips UAE 2025, US export controls AI chips, or UAE AI market growth, the decision, finalized in October 2025, allows Nvidia to supply its H100 and upcoming Blackwell GPUs to UAE’s state-backed AI initiatives, including G42, under strict export controls. The deal, valued at an estimated $2 billion in 2026, aligns with the UAE’s goal to become a global AI hub, with its AI market projected to reach $15 billion by 2030. This approval follows Nvidia’s $2 billion investment in xAI and comes amidst tightened U.S. export controls on AI technology to the Middle East, reflecting a strategic balance between geopolitics and economic interests.
This move strengthens Nvidia’s dominance in the $200 billion global AI chip market while advancing UAE’s Vision 2031 to diversify its economy beyond oil.
Deal Details: Nvidia’s AI Chip Sales to UAE
The U.S. Department of Commerce approved Nvidia’s export of AI chips, including H100 and Blackwell GPUs, to the UAE under a case-by-case licensing framework.
- Chips Approved: H100 (used in AI training) and Blackwell GPUs (next-gen, launching Q1 2026).
- Buyers: UAE’s G42 (state-backed AI firm) and other government entities, with 10,000 GPUs ordered for 2026.
- Deal Value: Estimated $2 billion in 2026, with potential for $5 billion by 2028.
- Export Controls: U.S. imposes end-use monitoring to prevent re-export to China or Russia.
- Timeline: Shipments to begin Q1 2026, with G42’s AI supercomputer deployment by mid-2026.
Nvidia CEO Jensen Huang: “This approval lets us empower UAE’s AI vision while aligning with U.S. security priorities.”
| Metric | Details |
|---|---|
| Chips | H100, Blackwell GPUs |
| Buyer | G42, UAE government |
| Order Volume | 10,000 GPUs (2026) |
| Deal Value | $2B (2026) |
| Market | UAE ($15B by 2030) |
Strategic Context: UAE’s AI Push and U.S. Export Policy
The approval reflects a delicate balance between U.S. export controls and UAE’s AI ambitions:
- UAE’s AI Strategy: UAE aims to contribute 10% of global AI GDP by 2030, with G42’s supercomputer targeting healthcare and energy applications.
- U.S. Controls: Post-2022 restrictions banned AI chip exports to China and parts of the Middle East; UAE’s approval is an exception due to its U.S. alliance.
- Nvidia’s Role: Holds 80% of the $200 billion AI chip market, with $96 billion FY25 revenue.
- Geopolitical Ties: UAE’s $10 billion trade surplus with the U.S. and military partnerships eased approval.
Implications and Challenges
- Opportunities:
- Market Expansion: Nvidia taps UAE’s $15 billion AI market, growing at 25% CAGR.
- UAE AI Hub: Bolsters G42’s projects, creating 5,000 AI jobs by 2027.
- Nvidia Revenue: $2 billion deal adds 2% to FY26 projected revenue of $150 billion.
- Challenges:
- Export Compliance: U.S. monitoring could delay shipments or raise costs.
- Competition: AMD and Intel eye Middle East markets, though trail Nvidia’s 80% share.
- Geopolitical Risks: Tensions with China could complicate UAE’s neutral stance.
Outlook: Nvidia and UAE’s AI Future
Nvidia plans to supply 20,000 GPUs to the UAE by 2028, with potential deals in Saudi Arabia pending U.S. approval. The UAE aims to deploy AI across 30% of its economy by 2030, leveraging Nvidia’s chips for smart cities and healthcare.
Conclusion: Nvidia’s UAE AI Chip Deal
The U.S. approval for Nvidia to sell AI chips to the UAE in October 2025 opens a $2 billion market, strengthening the UAE’s AI hub ambitions and Nvidia’s 80% dominance in the $200 billion AI chip sector. With strict export controls ensuring U.S. interests, the deal is a win-win, but geopolitical and competitive challenges loom. For Nvidia and the UAE, it’s a silicon leap—will it reshape the Middle East’s tech landscape? The circuits power up. bloomberg
