The United States government has approved a first-of-its-kind export license allowing Microsoft to ship Nvidia’s most advanced AI chips to the United Arab Emirates (UAE). This is a significant development in U.S. technology policy, as it enables a major American tech firm to support AI-related infrastructure growth in a region that is accelerating its artificial intelligence capabilities.
The Commerce Department’s approval, granted in September 2025, allows Microsoft to deliver Nvidia’s GB300 GPUs to the UAE.
In tandem, Microsoft announced a major expansion of its investments in the Gulf nation, increasing its financial commitment to more than $15 billion by 2030. Major funds were allocated toward cloud infrastructure, AI research, and its partnership with local AI firm G42.
Why It Matters: This decision enables the UAE to access cutting-edge AI hardware at a time when access to such technology is shaping global development patterns. For the U.S., it also represents a way to maintain influence in regions investing heavily in AI, without relying on military or political tools alone. For U.S. companies, the decision opens doors to international markets while remaining within government-approved safeguards.
- Nvidia Stock Rises 3% After Export Deal Announcement: Nvidia shares rose 3% following news that the U.S. had authorized a large shipment of its AI chips to the UAE through Microsoft. Investors responded positively to the development, viewing it as a sign of strong international demand for Nvidia’s products. Microsoft stock also edged higher as the company added another growth avenue to its global AI infrastructure plans..
- Massive Investment Boost for UAE AI Infrastructure: Microsoft confirmed it will increase its overall investment in the UAE to $15.2 billion by the end of the decade, following the license approval. This includes $5.5 billion dedicated to capital expenditures for AI and cloud infrastructure development, plus a $1.5 billion equity investment in G42, the UAE-based AI company spearheading the construction of a major data center in Abu Dhabi. These efforts are intended to support national initiatives focused on integrating AI into the country’s larger development plans.
- Nvidia Chips Central to UAE’s AI Development Plans: The authorization gives Microsoft the ability to ship tens of thousands of Nvidia GPUs that are critical for training and deploying large-scale AI models. Microsoft will use these chips to offer access to platforms such as OpenAI, Anthropic, open-source developers, and its own AI tools. This hardware influx is expected to significantly improve the UAE’s capacity to run advanced language models and machine learning systems, making it a major center for applied AI in the Middle East.
- U.S.-UAE Tech Collaboration Seen as Counter to Chinese Influence: The chip approval follows a May 2025 agreement between U.S. President Donald Trump and UAE President Sheikh Mohamed bin Zayed to jointly support the development of an AI data center campus in Abu Dhabi. That project had previously stalled due to export restrictions on advanced chips. With the licensing hurdle cleared, U.S. officials and Microsoft executives view the project as a pathway to strengthen collaboration in advanced technologies while reducing reliance on Chinese vendors and platforms that have been expanding across the region.
- Focus on Global AI Access and Economic Inclusion: Microsoft president, Brad Smith, emphasized that the distribution of AI tools across regions like the Middle East, southern Europe, Africa, and East Asia will determine whether artificial intelligence becomes a widely beneficial technology or one that further divides economies. By boosting AI computing power in the UAE, Microsoft hopes to support broader international access to AI capabilities. Smith cautioned that without deliberate investments in emerging regions, access to transformative technologies could remain limited to a few countries and create wider global inequality.
US allows Microsoft to ship Nvidia AI chips to use in UAE for first time – Financial Times
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