en.Wedoany.com Reported - The US government has relaxed export restrictions on the United Arab Emirates, clearing the way for the country to procure advanced technologies, including semiconductors, that are crucial for its development of artificial intelligence. In a notice released on Friday, the US Department of Commerce stated that the UAE now qualifies for more lenient treatment under US export control laws, citing the UAE's measures to protect sensitive US technology. The rule change, issued by the Bureau of Industry and Security, also referenced the UAE's support during the US war against Iran.
This move means that the UAE government and specific approved commercial entities, such as its leading tech firm G42, can purchase cutting-edge AI chips from Nvidia Corp. and Advanced Micro Devices Inc. without a US government license. The new rules impose no cap on the quantity of chips or other high-end goods these entities can buy. UAE Ambassador Yousef Al Otaiba issued a statement on platform X, calling the decision "an affirmation and advancement of decades of deep and reliable cooperation between the UAE and the US in technology, security, trade, and investment."
Since President Donald Trump returned to the White House, his administration has pushed for US technology exports, particularly in AI. Trump made AI investment a core topic during his visit to the Middle East last year, during which Silicon Valley giants struck a series of deals with companies in the UAE and Saudi Arabia. In recent years, the UAE has invested significant oil wealth and political capital into computing infrastructure, aiming to become a regional and even Global South AI hub. This occurred before the US and Israeli war against Iran, during which multiple data centers in the Gulf region were attacked, raising concerns about the area's ability to attract overseas tech investment.
The policy change immediately drew opposition from national security hawks in Washington. Chris McGuire, a senior fellow at the Council on Foreign Relations who served in both the Trump and Biden administrations, warned that the move could allow China to access US technology while slowing down the US AI deployment process. McGuire wrote on X that this poses significant national security risks, as the UAE could become one of the world's most important AI computing hubs, also serving as a backdoor for China and exacerbating the shortage of US AI chips.
At the heart of national security concerns is the possibility that China could obtain AI processors shipped to the UAE through physical chip transfers or by leveraging their capabilities via cloud services. Hardliners on China have particularly targeted G42, which has historical ties with Huawei Technologies Co. but is currently trying to distance itself from the Chinese tech giant. With this move, the US has reclassified the UAE into a different country category, allowing it to access US high-tech products with fewer licensing requirements. The rule change also eases restrictions on sales of commercial satellites and spacecraft, military equipment, and civilian nuclear power generation products.
This decision paves the way for a significant expansion of AI development cooperation between the US and the UAE. For example, G42 is partnering with OpenAI and Oracle Corp. to build a 5-gigawatt data center cluster in Abu Dhabi and seeks to purchase AI chips from Nvidia, AMD, and Cerebras Systems Inc. Previously, these joint projects were delayed due to US licensing restrictions. Late last year, the Commerce Department approved the sale of tens of thousands of advanced AI chips to G42, and the new rules will allow G42 to make similar purchases in the future without a license.
Andrew Feldman, CEO of Cerebras, praised the government's decision to relax restrictions, stating that the UAE has been an outstanding ally of the US and that ensuring countries supporting American values remain in the US technology ecosystem is good policy. UAE companies authorized to purchase AI chips without a license also include G42's Core42 division. MGX, an Abu Dhabi fund backed by G42, has separately received preferential treatment. The rule change also allows eight US-based companies and their UAE subsidiaries to purchase AI processors without a license: Amazon.com Inc., Alphabet Inc.'s Google, Apple Inc., Meta Platforms Inc., Microsoft Corp., OpenAI, Oracle Corp., and xAI, a subsidiary of SpaceX.
The notice, signed by Bureau of Industry and Security Director Jeffrey Kessler, cited growing trade ties between the US and the UAE, emphasizing that the UAE's foreign direct investment in AI, metals, aviation, and energy is estimated to exceed $1 trillion. As Commerce Department officials announced these changes, US lawmakers are considering a series of bills aimed at tightening export controls on AI chip and semiconductor manufacturing technology sales, measures that face strong opposition from the White House and the chip industry. US Democratic Senator Elizabeth Warren has called on Kessler and Commerce Secretary Howard Lutnick to appear before the Senate Banking Committee to explain the decision. Kessler plans to testify at a House Foreign Affairs Committee hearing on US export control programs.
