Microsoft to ship Nvidia AI chips to UAE for first time under US deal

In a significant move that underscores the geopolitical dimensions of the artificial intelligence race, the United States allowed to ship advanced Nvidia AI chips to the United Arab Emirates (UAE) for the first time.

With this approval from the U.S. Commerce Department, a new way for Microsoft has been paved to move forward with a massive expansion of its AI and cloud infrastructure investments in the Gulf region, a key battleground in Washington’s technological struggle with Beijing.

The project has been contingent on securing an export license for the powerful Nvidia processors, which are critical for training and operating the latest AI systems but are subject to strict U.S. controls over national security concerns.

Microsoft’s president, Brad Smith, confirmed to the Financial Times that the company has become “the first ever to receive a license under the Trump administration” to export the coveted chips to the UAE in September.

“You cannot get those experts licenses unless you’re able to meet the requirements that have been imposed by the U.S. government,” he added.

Smith further noted that the company earned this position by “satisfying every stringent cyber security, physical security, and other security requirements.”

The clearance is the aftermath of the deal between US President Donald Trump and UAE President Sheikh Mohamed bin Zayed al-Nahyan to build a vast AI data center campus in Abu Dhabi.

With the regulatory hurdle cleared, Microsoft has announced a substantial financial commitment.

The company also unveils its plans to expand its total investment in the UAE from $7.3 billion over the past three years to more than $7.9 billion between 2026 and 2029.

Of this new investment, $5.5 billion is earmarked for capital spending on AI and cloud infrastructure, highlighting a deep and long-term strategic bet on the region’s digital future.