In a landmark move, the U.S. Department of Commerce has granted Microsoft permission to export Nvidia’s advanced AI chips to the United Arab Emirates (UAE), marking the first such approval under the current administration. The decision supports Microsoft’s $15.2 billion investment plan in the region, aimed at expanding AI and cloud infrastructure in partnership with Abu Dhabi-based firm G42.
Details of the Approval
Microsoft President Brad Smith confirmed on November 3, 2025, that the company received the export license in September, allowing shipments of Nvidia’s A100, H100, and GB300 GPUs to the UAE. The chips will be used by U.S. companies operating data centers and AI facilities in the country under strict cybersecurity and physical control measures to ensure compliance with U.S. regulations.
This marks the first time U.S. authorities have approved the export of top-tier Nvidia AI chips to the UAE, signaling a deepening of bilateral tech cooperation. Previously, Washington had permitted limited Nvidia chip sales for American clients in the region but had withheld permissions for direct transfers involving local partners like G42.
Market and Geopolitical Context
The announcement fueled optimism in markets, with Nvidia shares rising in premarket trading. Analysts view the move as a pivotal step in expanding U.S. AI influence abroad, reinforcing Washington’s ties with Gulf partners while maintaining export controls on sensitive technologies.
The approval also strengthens the UAE’s growing reputation as a global AI hub, following a series of major investments in semiconductor, cloud, and quantum computing projects. Microsoft’s expanded partnership with G42 aligns with both nations’ strategic interests, advancing digital infrastructure while ensuring U.S. oversight of critical AI technologies.
The development underscores the balancing act between fostering innovation and maintaining technological safeguards, a theme increasingly central to U.S. foreign policy in the AI era.