Microsoft Becomes First Company to Ship Nvidia's Advanced AI Chips to UAE Under Trump Administration

Reviewed byNidhi Govil

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Microsoft secured historic export licenses to ship over 60,000 Nvidia AI chips, including advanced GB300 Grace Blackwell processors, to the UAE as part of a $15.2 billion investment deal, marking the first such approval under the Trump administration.

Historic Export License Approval

Microsoft has achieved a significant milestone by becoming the first company under the Trump administration to secure export licenses for shipping advanced Nvidia AI chips to the United Arab Emirates. The Commerce Department approved the licenses in September under what Microsoft describes as "stringent" safeguards, enabling the tech giant to export more than 60,000 Nvidia chips to the Gulf nation

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Source: Wccftech

Source: Wccftech

The shipment includes Nvidia's most advanced GB300 Grace Blackwell chips, representing the cutting edge of AI processing technology. Microsoft President Brad Smith emphasized that obtaining these licenses required meeting "very stringent cyber security, physical security and other security requirements" imposed by the U.S. government

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Massive Investment Expansion

This chip approval is part of Microsoft's broader $15.2 billion investment commitment in the UAE's technology infrastructure. The company has already invested $7.3 billion over the past three years, including a $1.5 billion equity stake in Abu Dhabi-based G42, the country's sovereign AI company

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. Microsoft plans to invest an additional $7.9 billion from 2026 to 2029, with $5.5 billion specifically allocated for capital spending on AI and cloud infrastructure

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Source: Benzinga

Source: Benzinga

The UAE's commitment to this partnership is equally substantial, with the nation pledging $1.4 trillion in U.S. energy and AI-related projectsβ€”a remarkable sum considering the UAE's annual GDP is approximately $540 billion

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Strategic Geopolitical Implications

The approval comes amid heightened competition between the United States and China for AI leadership, with the Middle East emerging as a crucial battleground. The UAE's access to advanced AI chips is tied to what Ambassador Yousef Al Otaiba describes as setting a new "Gold Standard" for securing AI models, chips, data, and access

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Interestingly, the deal appears to contradict recent statements by President Trump, who told CBS News in a "60 Minutes" interview that the most advanced AI chips would not be exported outside the United States. When asked about allowing Nvidia to sell advanced chips to China, Trump stated: "The most advanced, we will not let anybody have them other than the United States"

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Technology Infrastructure Development

Microsoft's UAE operations will utilize these GPUs to provide access to advanced AI models from OpenAI, Anthropic, open-source providers, and Microsoft itself. The company already operates more than 21,000 Nvidia GPUs in the UAE through licenses approved under the previous Biden administration

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The initiative is anchored by what Microsoft calls a "technology, talent, and trust" framework, supported by a new Responsible AI Future Foundation and an intergovernmental assurance framework designed to align UAE operations with U.S. cybersecurity and data protection standards. Microsoft currently employs nearly 1,000 full-time staff in the UAE

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Source: AP NEWS

Source: AP NEWS

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