U.S. Approves AI Chip Exports to Gulf Following Saudi Crown Prince Visit

In a significant policy shift, the U.S. has greenlit the sale of advanced Nvidia chips to Saudi Arabia’s HUMAIN and the United Arab Emirates’ G42. These state-backed firms are now authorized to acquire up to 35,000 high-performance chips, a transaction estimated to be worth around $1 billion.

This move represents a notable reversal from previous U.S. policy, which had expressed reservations about direct exports of advanced AI technology to state-supported entities in the Gulf. Prior administrations implemented export controls, primarily driven by concerns that sophisticated American technology could potentially be diverted to China through Gulf Arab states.

Before former President Joe Biden’s departure from office, a final round of export restrictions was imposed on advanced AI chips, specifically targeting companies like Nvidia. This sweeping measure aimed to safeguard cutting-edge U.S. intellectual property from falling into Chinese hands, reflecting growing geopolitical tensions and technological competition.

Now, President Donald Trump’s administration is actively seeking to expand the reach of these advanced technologies, citing the goal of “promoting continued American AI dominance and global technological leadership,” according to a statement released by the U.S. Commerce Department on Wednesday. This strategic shift suggests a recalibration of U.S. foreign policy, balancing economic opportunities with national security considerations.

The U.S. Commerce Department’s approval of these chip exports is contingent upon HUMAIN and G42 adhering to what it calls “rigorous security and reporting requirements.” Oversight will be provided by the Department of Commerce’s Bureau of Industry and Security, indicating a commitment to monitoring the usage and preventing potential misuse of the exported technology.

This export approval coincides with Saudi Crown Prince Mohammed bin Salman’s recent visit to Washington, where the Kingdom pledged to invest $1 trillion in the U.S. economy. This represents a substantial increase from the initial $600 billion commitment made during Trump’s Gulf tour earlier in the year. The increased investment signals a deepening of economic ties between the two nations, possibly influencing the latest decision on chip exports.

“Even if we don’t get to that, both sides have skin in the game,” Afshin Molavi, senior fellow at the Foreign Policy Institute of the Johns Hopkins University School of Advanced International Studies, recently told CNBC, emphasizing the mutual benefits and vested interests driving this strategic partnership.

HUMAIN, backed by Saudi Arabia’s Public Investment Fund, which manages nearly $1 trillion, recently announced a series of partnerships with major tech firms at the U.S.-Saudi Investment Forum. These partnerships include collaborations with Adobe, Qualcomm, AMD, Cisco, GlobalAI, Groq, Luma, and xAI, indicating a broad-based effort to establish a strong foothold in the global AI landscape. Most notably, HUMAIN will collaborate with Elon Musk’s xAI to construct a 500-megawatt data center in Saudi Arabia, a powerful signal of intent.

“What we want to do in 2026 is to build the capacity equivalent to what Saudi has built in the last 20 years, in one year,” Tareq Amin, CEO of HUMAIN, stated at the summit. This ambitious goal underscores Saudi Arabia’s determination to become a prominent player in the global AI sector, aiming to become a leading AI hub alongside the U.S. and China.

According to Kamil Dimmich, partner and portfolio manager at North of South Capital, Saudi Arabia’s HUMAIN and UAE’s G42 possess what he describes as a unique combination of “the capital to invest, the relationships with Nvidia and the U.S. government.”

Dimmich suggests that G42 and HUMAIN can “leverage this to build out regional infrastructure, and they want to leverage that infrastructure to become a global hub for compute,” reflecting their strategic ambitions beyond regional investments.

Just weeks before this announcement, Microsoft secured an export license for advanced chips to the UAE. While the announcement acknowledged the significance of G42 as a key partner in the region, observers noted the local AI company was visibly absent, until now.