UAE’s deal to buy Nvidia AI chips reportedly on hold

A significant agreement for the United Arab Emirates (UAE) to acquire billions of dollars in AI chips from Nvidia and other semiconductor manufacturers is reportedly facing delays due to national security issues. According to sources cited by the Wall Street Journal, the concerns stem from fears that these advanced AI chips might eventually be diverted to China. This apprehension was highlighted during the initial discussions surrounding the deal. Despite assurances from UAE and Saudi Arabian officials regarding the implementation of protective measures, worries about potential chip smuggling to China have intensified in recent months. In light of these developments, the Trump administration is contemplating new export restrictions on AI chips to Thailand and Malaysia to prevent possible illicit transfers. Additionally, Malaysia has recently implemented a requirement for export permits for U.S. AI chips, further complicating the landscape for international semiconductor transactions.