Nvidia's UAE AI Chip Deal Faces Delays Amid Investment and Security Concerns

Nvidia CEO Jensen Huang frustrated by UAE AI chip delay, claims report -- White House said to be pressing nation to finalize U.S. investments before chip deliveries are authorized

Nvidia CEO Jensen Huang and several administration officials have been frustrated by delays to the AI chip company's multi-billion-dollar deal with the United Arab Emirates (UAE). The deal was first announced during President Donald Trump's visit to the country, where the U.A.E. promised to invest up to a billion dollars in the U.S. in exchange for approval to purchase a billion dollars' worth of Nvidia chips. However, the Wall Street Journal reports that the Middle Eastern nation is yet to finalize its investments -- a crucial requirement for U.S. Commerce Secretary Howard Lutnick before he approves Nvidia's export licenses to the country. UAE has been fast in jumping on the AI bandwagon, with G42, a UAE-based AI datacenter keen on getting its hands on Nvidia's latest chips. It's also the first to partner with OpenAI with the launch of Stargate UAE under its OpenAI for Countries global initiative. However, it seems that the UAE's plans are being derailed as it faces some headwinds in its talks with Washington. The reason for the delay is unclear, but there are reportedly some private complaints that Sec. Lutnick was causing the slowdown. On the other hand, there are also conflicting reports that deny this, with an Nvidia executive reportedly saying that it has no concerns about how the deal is going down. "Sacks and Secretary Lutnick are integral to the President's AI agenda and are working diligently to get deals done on behalf of the American people," said White House spokesperson Kush Desai. David Sacks is the White House Special Advisor for Artificial Intelligence and Cryptocurrency, dubbed the White House AI Czar. Under his purview, the White House removed several regulations that were "burdensome" to AI development and focused on supporting the rapid innovation of American AI. There are reports that the delays are caused by the Emiratis' slow commitment to their investments. It has already been months since the deal was first announced, but it seems that there hasn't been any progress with the talks. Aside from this, there were also some national security concerns because of the UAE's ties with China. Despite all this, industry executives and administration officials see the UAE as crucial to maintaining the U.S.' global lead in AI. With the country willing to invest billions of dollars in infrastructure, it would allow American AI hardware to scale outside of the U.S. and its western allies. Aside from that, it's also seen as a key partner in expanding the United States' influence in artificial intelligence and advanced tech in the region.

Nvidia CEO Jensen Huang Reportedly Frustrated As Trump's Commerce Secretary Slows UAE Chips Deal Over China Link - NVIDIA (NASDAQ:NVDA), Taiwan Semiconductor (NYSE:TSM)

A multibillion-dollar deal for Nvidia Corporation (NASDAQ:NVDA) to supply advanced AI chips to the UAE has been stalled for months, reportedly frustrating CEO Jensen Huang as U.S. Commerce Secretary Howard Lutnick pushes Abu Dhabi to finalize investments before shipments proceed. Nvidia's market cap has reached $4.59 trillion, with shares climbing 58.97% over the past year and advancing 36.61% in 2025 to date. On Thursday, the stock rose 0.91%, according to Benzinga Pro. Deal Faces Unexpected Delays The agreement, announced in May, was meant to showcase the White House's push to expand U.S. tech influence abroad while countering China's AI ambitions. However, the Emirati investments have yet to materialize, baffling some administration officials, reported the Wall Street Journal, citing people familiar with the matter. The stalled deal is seen as a setback for Huang and White House AI Czar David Sacks, who view such agreements as crucial to advancing U.S. tech strategy and maintaining an edge over China in the AI race. "Sacks and Secretary Lutnick are integral to the President's AI agenda and are working diligently to get deals done on behalf of the American people," White House spokesman Kush Desai told the publication. See Also: Mitch McConnell Says Trump Tariffs-Ushered Era Has 'Similarities' With The 1930s Security Concerns Over UAE-China Ties The Commerce Department's approval is required before Nvidia can deliver the chips. Lutnick has conditioned approval on the UAE finalizing its U.S. investments, while also raising concerns about the Gulf nation's close relationship with China, the report added. Nvidia Execs And CEO Jensen Huang's Frustration Huang and Nvidia executives have privately expressed frustration over the delays, the sources said. One senior Nvidia executive denied that the company is alarmed, the report added. Nvidia and the Commerce Department did not immediately respond to Benzinga's request for comments. Trump's Broader AI Strategy The UAE deal was touted by President Donald Trump during his May visit to Abu Dhabi, part of what the White House said was more than $200 billion in bilateral agreements. The UAE pledged to fund U.S. data centers for AI training while purchasing billions in Nvidia chips. For now, the deal remains stuck, with one official saying at least $1 billion in investments and chips could still be exchanged by year's end. UAE Aims To Become Global AI Hub With OpenAI Collaboration Last week, UAE President Sheikh Mohammed bin Zayed met OpenAI CEO Sam Altman in Abu Dhabi to discuss AI collaboration. The talks focused on building an integrated AI ecosystem to support the UAE's development goals. Separately, in July, it was reported that Taiwan Semiconductor Manufacturing Co. (NYSE:TSM) is reportedly considering building a six-factory gigafab in the UAE, pending U.S. regulatory approval due to the Gulf nation's ties with China and Iran. Benzinga's Edge Stock Rankings rank Nvidia's growth in the 97th percentile, showing its performance relative to other top AI companies like TSMC and AMD. Read next: Apple May See Fewer Searches In Safari, But Google CEO Sundar Pichai Insists AI Is Fueling Overall Query Growth: 'Far From A Zero-Sum Game' Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Photo courtesy: jamesonwu1972 / Shutterstock.com NVDANVIDIA Corp$188.980.93%OverviewTSMTaiwan Semiconductor Manufacturing Co Ltd$288.990.18%Market News and Data brought to you by Benzinga APIs