US eases export restrictions on AI chips to UAE after military partnership in Iran conflict

US eases restrictions on Apple's access to AI chips and data center equipment in the UAE

Apple is among eight U.S. companies now able to bring covered advanced-computing chips, servers, and other controlled technology into the UAE without applying for individual export licenses. Here's what that means. UAE export hurdles cleared As spotted by Reuters, the U.S. Department of Commerce is relaxing export restrictions for the United Arab Emirates, giving approved companies easier access to certain advanced computing hardware and other controlled technologies. From the final rule, filed for public inspection ahead of its July 14 publication in the Federal Register, where STA stands for Strategic Trade Authorization: "Certain U.S.-headquartered AI companies and their UAE-based subsidiaries [...] may, as specified, receive advanced computing items license-free [...] and receive all other eligible items pursuant to full use of License Exception STA." Apple is one of eight U.S.-headquartered companies covered by the new rule, alongside Amazon, Google, Meta, Microsoft, OpenAI, Oracle, and xAI. The authorization covers "advanced computing items" regulated by sections 742.6(a)(6)(iii)(A)-(B) of the Export Administration Regulations. In a nutshell, these rules govern when companies need U.S. approval to export, reexport, or transfer covered advanced-computing chips, servers, and other systems that contain them, as well as designated software and technology. They also account for who ultimately receives and uses those items, and for what purpose. Under the new rule, Apple and its subsidiaries (alongside the other companies mentioned in the document) can receive covered advanced-computing chips, servers, software, and technology at their UAE operations without applying for individual licenses, provided they are the approved recipients and end users. If and how Apple will take advantage of the new authorization remains to be seen, although data center infrastructure would be the most obvious use case. Worth checking out on Amazon

US Makes It Easier to Export Certain Military Items, AI Chips and Commercial Satellites to the UAE

July 10 (Reuters) - The U.S. ⁠Department ⁠of Commerce loosened export controls ⁠on the United Arab Emirates on Friday, making it easier to export military items, certain commercial satellites and spacecraft, according to a U.S. government posting in the Federal Register. The UAE government and approved companies also will ⁠now be ⁠able to access advanced computing items license-free, the posting said. UAE companies G42 and Core42 and U.S. companies operating in the country, including Amazon, Apple, and xAI, are among those that no longer need licenses for AI chips and servers. In providing the more favorable treatment for certain exports ⁠to ⁠the UAE, the Commerce ⁠Department said the U.S. had worked with the country for decades to counter Iran and its proxies, ⁠including Hamas, Hezbollah and the Houthis. "More recently, the UAE played a key role advancing U.S. interests during Operation Epic Fury," the posting said, referring to the U.S.-Israeli strikes on Iran that began in February. Additionally, it ⁠noted, the UAE was the largest U.S. trading partner in the ⁠Middle East, and that its foreign direct investment in the United States was valued at over $1 trillion. Under the new regulation, the Commerce Department moved the UAE into a country grouping that allows more license exceptions for military and dual-use items controlled by the department. The UAE will be the only country in the group that is not a member of multilateral export control regimes. ⁠Other countries in the grouping include NATO countries and other allies. Other countries in the region such as Israel and Saudi Arabia are not members of that group. (Reporting by Karen Freifeld; Additional reporting by Daphne Psaledakis; Writing by Ismail Shakil; Editing by Doina Chiacu and Andrea Ricci )

US rewards UAE's military aid in Iran war with expanded access to AI chips - report

The United States granted the United Arab Emirates increased access to AI chips and servers, in recognition of the UAE's support in advancing national security interests, including Operation Epic Fury, the US Department of Commerce's Bureau of Industry and Security (BIS) announced on Friday. The UAE's status has been upgraded under the Export Administration Regulations (EAR), which will eliminate restrictions on support for the UAE's drone programs and will make the UAE eligible for license-free exports, re-exports, and in-country transfers of certain military items. It will also allow the UAE government and certain companies to receive advanced computing items in the UAE without licenses that can take months to obtain. Therefore, the country's main AI company, G42, which is run by the brother of the UAE's president and UAE national-security adviser, Sheikh Tahnoon bin Zayed Al Nahyan, will be able to buy chips freely from companies such as Nvidia for at least the next nine months. Expanded access could be worth billions It will also remove limits on US companies such as Microsoft and OpenAI that have planned data centers in the UAE, the Wall Street Journal reported on Wednesday. According to the report, experts say that the change to the chip access alone could be worth billions of dollars. In exchange, BIS stated that the UAE has committed to make matching investments in US AI digital infrastructure buildout. UAE officials have indicated that G42, controlled by UAE national security adviser Sheikh Tahnoon bin Zayed Al Nahyan, plans to become a US company, primarily owned by US investors, WSJ cited several people familiar with the discussions as saying. Tahnoon and other UAE officials have lobbied for chip access for years and approached the White House directly after the start of Operation Epic Fury, looking to India as an example of a country that gained elevated trade benefits after becoming a major defense partner of the US in 2016, WSJ wrote. Decision sparks controversy over security Critics of the move argue that allowing the UAE greater access to the chips could harm the US in the AI race against China, and others expressed concern over the security of advanced computing power built outside the US, according to WSJ. "The UAE has been a great partner with Iran, but that doesn't necessarily mean they've demonstrated the capability to keep a data center secure," WSJ cited Michael Sobolik, a senior fellow at the Hudson Institute, a conservative think tank, as saying. Others, including members of Congress such as California Representative Sydney Kamlager-Dove, expressed worries over financial ties between Tahnoon and Trump. "It smells like it could be an illegal pay-to-play scheme," Kamlager-Dove said on Tuesday. However, the White House has denied any conflicts of interest, the WSJ wrote. The UAE will also be able to receive certain commercial satellites, spacecraft, and items that can be used for military purposes, oil and gas production, desalination, and civil power generation without a license, according to the Department of Commerce. This "will support key UAE commercial and infrastructure needs and better equip the UAE defense establishment to support US interests in the Middle East," according to a department statement. "The status is warranted in the ongoing US-UAE military partnership and the UAE's commitment to preventing the diversion and misuse of sensitive US technology," the statement added.

US eases UAE access to coveted AI chips after Gulf nation provided help in Iran war

The United Arab Emirates is getting broader access to prized US artificial intelligence chips after becoming a key military partner during the conflict with Iran - the latest instance of AI chips becoming a powerful bargaining chip in international diplomacy. The UAE has carried out dozens of airstrikes, intercepted hundreds of missiles and helped keep oil flowing through the Strait of Hormuz. Under a Trump administration rule announced Friday, the UAE is being placed in the same export category as European nations, South Korea and India for purchases of technology, military equipment and energy infrastructure with potential military uses. The UAE was previously in the same category as countries including China and Yemen. President Trump praised UAE President Sheikh Mohamed bin Zayed Al Nahyan during a recent Group of Seven summit in France. "His Highness is a warrior," he said. "They've been with the United States for a long time, but I would say much more so since I came on board." The Gulf nation has tried for years to secure cutting-edge American technology as it works to diversify its economy. The decision is likely to face political scrutiny because it benefits a country whose national security adviser became a major business partner of the Trump family last year. The White House has denied any conflicts of interest. "It smells like it could be an illegal pay-to-play scheme," Rep. Sydney Kamlager-Dove (D-Calif.) said Tuesday during a House committee hearing. Commerce Department official Jeffrey Kessler, whose office oversees export controls, said he never discussed AI chip exports to the UAE with Trump family members or executives at their World Liberty Financial, the crypto company founded by Trump, special envoy Steve Witkoff and their sons. "It is one of the most significant achievements of the administration," Kessler said of the UAE announcement. The move will enable G42, the UAE's flagship AI company, to buy Nvidia chips without restriction for at least the next nine months. The rule change also lifts export hurdles for Microsoft and OpenAI, both of which have announced plans for data centers in the UAE. "The U.A.E. has been a great partner with Iran, but that doesn't necessarily mean they've demonstrated the capability to keep a data center secure," Hudson Institute senior fellow Michael Sobolik told the Wall Street Journal. Under the previous status quo, UAE companies had to obtain Commerce Department licenses before shipping the advanced chips needed to run AI models, a process that often stretched for months. Industry analysts said the expanded access could be worth billions of dollars. Emirati officials recently indicated that G42 could eventually become a US company with a majority of its ownership held by American investors, according to the Journal. The company is controlled by Sheikh Tahnoon bin Zayed Al Nahyan, the UAE's national security adviser and the brother of the president. Tahnoon has spearheaded the country's push for AI chips since the Biden administration. After the war with Iran began, Emirati officials renewed their lobbying campaign with the White House, urging officials to upgrade the country's export status, the Journal reported. The UAE strengthened ties with Israel and several Arab nations by signing the Abraham Accords in 2020 before joining the US in military action against Iran. One American official reportedly said that support convinced the White House and senior administration officials that the UAE had proven itself to be a dependable ally. Days before Trump's second inauguration, Tahnoon and other investors agreed to pay $500 million for a 49% stake in World Liberty Financial, drawing howls from Dems. Separately, the UAE pledged to invest $1.4 trillion in the United States. UAE officials originally urged Washington not to launch a war against Iran. But after the Gulf nation absorbed major retaliatory drone attacks from Iran, officials shifted course and coordinated military strikes alongside the US and Israel.

US makes it easier to export Nvidia AI chips and military equipment to the UAE

July 10 (Reuters) - The U.S. loosened export controls on the United Arab Emirates on Friday, making it easier to export Nvidia AI chips, military equipment, commercial satellites and spacecraft in a boost to relations between the two allies. The announcement underscores strengthening U.S.-UAE relations, with the Gulf ally playing an increasingly important role in Washington's strategy toward Iran, while creating revenue opportunities for U.S. companies, particularly tech firms. The UAE government and approved companies will now be able to access advanced computing items license-free, the posting in the Federal Register, the government's official journal, said. UAE companies G42 and Core42 and U.S. companies and their subsidiaries operating in the country, including Amazon, Apple, and xAI, are among those that no longer need licenses for AI chips and servers. In providing the more favorable treatment for certain exports to the UAE, the Commerce Department said the U.S. had worked with the country for decades to counter Iran and its proxies, including Hamas, Hezbollah and the Houthis. "More recently, the UAE played a key role advancing U.S. interests during Operation Epic Fury," the posting said, referring to the U.S.-Israeli strikes on Iran that began in February. Additionally, it noted, the UAE was the largest U.S. trading partner in the Middle East, and that its foreign direct investment in the United States was valued at over $1 trillion. Under the new regulation, the Commerce Department moved the UAE into a country grouping that allows more license exceptions for military and dual-use items controlled by the department. The UAE will be the only country in the group that is not a member of multilateral export control regimes. Other countries in the grouping include NATO countries and other allies. Other countries in the region such as Israel and Saudi Arabia are not members of that group. In addition to the items mentioned, the change will also allow license-free access for certain exports involved in oil and gas production and civil nuclear power generation. Besides Amazon, Apple and xAI, U.S. companies that will no longer need licenses to receive advanced computing items in the UAE include Google, Meta, Microsoft, OpenAI and Oracle, the Commerce Department posting said. In addition, the posting said, the department plans to "favorably review" export license applications for chips and servers to UAE company MGX. In 2025, the U.S. reached a preliminary agreement with the UAE to allow it to import hundreds of thousands of Nvidia AI chips. On Friday, the Commerce Department said the license-free access for the UAE government and approved companies was consistent with the finalized May 2025 framework. Licenses for companies like G42 were contentious when they were granted, in part because of the potential for the companies to serve Chinese customers. Under this new regime, there will no longer be room for debate within the administration, said a former Commerce Department official. But the move has already raised the hackles of Democratic Senator Elizabeth Warren, the ranking member of the Senate Banking Committee. "We already know that the UAE royal behind G42 and MGX secretly bought a 49% stake in the Trump crypto company, World Liberty Financial," Warren said in a statement. "Now, Trump's Commerce Department is giving G42 license-free access to advanced AI chips and promising favorable treatment for MGX, despite reported concerns about the diversion of sensitive technology to China and other national security risks." The Commerce Department did not immediately respond to a request for comment. (Reporting by Karen Freifeld; Additional reporting by Daphne Psaledakis and David Shepardson. Editing by Doina Chiacu and Andrea Ricci)