Trump Administration Still Hesitant to Allow NVIDIA’s High-End AI Chips to Middle East

Despite the buzz surrounding President Trump’s visit to the Middle East, the AI sector has seen a bottleneck in terms of chip deals, with the U.S.

still hesitant to supply NVIDIA’s high-end AI chips to the region. This move comes as officials are concerned about the possibility of these chips being funneled to China, which could result in an indirect tech transfer.

NVIDIA, which started as a company catering to Big Tech, has rapidly expanded its reach to include entire countries, positioning itself as a key player in global AI infrastructure. The company’s strategy aligns with President Trump’s Middle East diplomacy, which, according to reports, resulted in billions of dollars worth of contracts, particularly with state-backed firms like G42. This raised hopes that the Middle East could replace China as a major market for NVIDIA’s chips. However, U.S. officials remain wary about allowing these powerful technologies into the hands of nations like the UAE or Saudi Arabia, fearing a transfer of sensitive technology to China, a country with which many Gulf states have deepened ties.

At the heart of the uncertainty is NVIDIA’s Stargate UAE project, which is set to feature up to 100,000 chips, driving further concerns about the potential military or strategic use of these high-performance GPUs. Saudi Arabia and other Gulf states have also made significant moves in AI, including partnerships with HUMAIN AI, signaling their commitment to building AI infrastructure with substantial financial backing from their vast oil wealth. But the U.S. is treading carefully, weighing national security implications against the economic potential of these deals.

While Gulf nations have the resources to pour billions into AI initiatives, their reliance on U.S. tech is undeniable. As a result, any deal could come with stringent conditions from Washington, such as restrictions on the use of Chinese technologies or talent. With the U.S. still undecided, it’s clear that the AI deals are in the early stages. If the Gulf states refuse to comply with the terms, they might find themselves cut off from these cutting-edge technologies, leaving the future of AI development in the region uncertain.