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UAE, U.S. ink landmark agreement for advanced AI semiconductor purchases

The agreement will generate significant business and boost the UAE's AI ambitions
UAE, U.S. ink landmark agreement for advanced AI semiconductor purchases
During the U.S. President Donald Trump’s visit on Thursday to the Sheikh Zayed Grand Mosque in Abu Dhabi, accompanied by His Highness Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Chairman of the Abu Dhabi Executive Council. (Photo Credit: Abu Dhabi Media Office)

U.S. President Donald Trump announced on Friday that the United Arab Emirates (UAE) and the United States (U.S.) have reached an agreement to establish a pathway for the Gulf nation to purchase some of the most advanced artificial intelligence semiconductors from American companies. This deal, finalized on Thursday during Trump’s visit to Abu Dhabi, marks a significant victory for the UAE, which has been navigating its relationships with both its long-standing ally, the U.S., and its largest trading partner, China.

The agreement demonstrates the Trump administration’s confidence in the secure management of these chips, partly by stipulating that data centers must be operated by U.S. companies.

“We’re making great progress for the $1.4 trillion that UAE has announced it intends to spend in the United States,” Trump stated during the final leg of his multi-day tour of Gulf states, which included visits to Saudi Arabia and Qatar.

“Yesterday the two countries also agreed to create a path for the UAE to buy some of the world’s most advanced AI semiconductors from American companies, a very big contract,” he further emphasized.

“This will generate billions and billions of dollars in business and accelerate the UAE’s plans to become a truly major player in artificial intelligence,” Trump added.

In March, the UAE committed to a 10-year, $1.4 trillion investment framework in the United States across various sectors, including energy, AI, and manufacturing.

Read more: UAE and U.S. to invest $440 billion in energy sector by 2035, says Al Jaber

Launch of largest AI Campus outside U.S.

The UAE and the U.S. have signed an agreement to establish the largest AI campus outside the U.S. in Abu Dhabi. The 5GW UAE-U.S. AI Campus was unveiled at Qasr Al Watan with UAE President Sheikh Mohamed bin Zayed Al Nahyan and U.S. President Donald Trump present. This campus will host American hyperscalers and enterprises, enhancing regional compute resources for the Global South.

Moreover, H.H. Sheikh Tahnoon bin Zayed Al Nahyan stated that the campus reflects the UAE’s commitment to innovation and global collaboration in AI, strengthening its position as a hub for research and sustainable development. The facility will utilize nuclear, solar, and gas power to reduce carbon emissions and will include a science park for AI advancements.

Spanning 10 square miles, the campus will be built by G42 in partnership with U.S. companies, as part of the “U.S.-UAE AI Acceleration Partnership.” The two nations will work together to regulate access to compute resources for U.S. hyperscalers and approved providers.

The White House further confirmed that the agreement includes the UAE’s commitment to invest in U.S. data centers and align national security regulations with the U.S. Furthermore, the partnership aims to safeguard advanced AI technologies and ensure controlled access.

During Trump’s visit, several AI-related deals were signed, including Qualcomm’s collaboration with ADIO and e&. A new Global Engineering Center in Abu Dhabi will focus on AI and data centers, supporting the UAE’s digital transformation and U.S. tech demand. Additionally, Amazon Web Services and others launched a Sovereign Cloud Launchpad, expected to boost the UAE’s digital economy significantly by 2033.

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