U.S. greenlights AI chip exports to Gulf tech giants after Saudi Crown Prince's Washington visit

In a significant shift, the United States has granted approval for the sale of cutting-edge Nvidia chips to two prominent tech firms in the Gulf region: Saudi Arabia's HUMAIN and the UAE's G42. This authorization allows these state-backed companies to procure up to 35,000 chips, an investment estimated at $1 billion. This decision marks a departure from previous U.S. policies that restricted the export of advanced technology to state-supported AI entities in the Gulf, primarily due to concerns over the potential transfer of American intellectual property to China. Under former President Joe Biden, stringent export controls were imposed, specifically targeting companies like Nvidia to prevent crucial technology from reaching adversary nations. However, the current administration, led by President Donald Trump, is now focusing on expanding access to these advanced technologies to maintain American leadership in AI and global tech innovation, as stated by the U.S. Commerce Department. The export approval comes with strict conditions. The Gulf firms must adhere to comprehensive security and reporting measures, which will be monitored by the Department of Commerce's Bureau of Industry and Security. This decision is closely linked to the recent visit of Saudi Crown Prince Mohammed bin Salman to Washington, where he announced an increase in the Kingdom's investment commitment in the U.S. from $600 billion to a staggering $1 trillion. During this U.S.-Saudi Investment Forum, HUMAIN, backed by Saudi Arabia’s nearly $1 trillion Public Investment Fund, unveiled multiple partnerships with major tech players including Adobe, Qualcomm, AMD, Cisco, GlobalAI, Groq, Luma, and xAI. Notably, HUMAIN has plans to collaborate with Elon Musk's xAI to construct a massive 500 megawatt data center in Saudi Arabia. Tareq Amin, CEO of HUMAIN, expressed ambitious goals, stating, "Our objective for 2026 is to match the AI capacity that Saudi Arabia has developed over the past 20 years, all in just one year." This initiative aims to elevate Saudi Arabia to the status of the third-largest global AI hub, following the United States and China. Experts note that both HUMAIN and G42 possess the necessary financial resources and connections with Nvidia, along with a favorable relationship with the U.S. government. This positions them to establish significant regional infrastructure, aspiring to transform into a global center for computing capabilities. Just weeks ago, Microsoft also obtained an export license for advanced chips to the UAE, further illustrating the growing dynamics of AI technology in the region.