The Trump administration has cleared the way for expanded sales of America’s most advanced AI chips to the United Arab Emirates, crediting the Gulf nation’s cooperation during the Iran war and its steps to safeguard sensitive U.S. technology — a move the administration says strengthens a key ally while critics warn could open a backdoor for China.
The Commerce Department’s Bureau of Industry and Security reclassified the UAE into the highest-trust Country Group A:5, allowing license-free export of advanced Nvidia and AMD AI chips, high-performance servers, commercial satellites, and certain military items. The rule change cited both the UAE’s steps to protect sensitive American technology and its support for the U.S. in the war against Iran.
A Boost for American Industry
The policy accelerates development of the $30 billion Stargate UAE AI campus, a massive AI compute facility in Abu Dhabi, and removes previous license requirements for approved entities like the UAE’s G42. Supporters say the move deepens an important strategic and commercial partnership at a moment when the UAE has proven itself a reliable regional ally, while ensuring American firms — not foreign competitors — supply the infrastructure powering the next generation of Gulf AI development. UAE Ambassador Yousef Al Otaiba praised the decision, saying it “affirms and advances decades of deep and dependable UAE-US cooperation in technology, security, trade and investment.”
Democrats Demand Answers
The decision hasn’t gone unchallenged. Sen. Elizabeth Warren, D-Mass., called on Commerce Secretary Howard Lutnick and Under Secretary Jeffrey Kessler to testify before the Senate Banking Committee, arguing the move happened “despite reported concerns about the diversion of sensitive technology to China and other national security risks.” Warren has also raised questions about financial ties between UAE-linked entities and Trump-connected business ventures, though administration officials maintain the export decision was made purely on national security and alliance grounds.
Balancing Security and Strategy
Some China hawks in Washington remain wary, warning the move could allow sensitive AI technology to reach China through cloud computing access or physical transfer of chips, particularly given G42’s past ties to Huawei — though G42 says it has since distanced itself from the Chinese firm. The administration has countered that keeping the UAE firmly in America’s technological orbit, rather than pushing it toward Chinese suppliers, is the more strategically sound long-term choice — especially given the UAE’s cooperation during the ongoing Iran conflict.
This story is developing.
