- Microsoft will send 60,000 NVIDIA AI chips to the United Arab Emirates following U.S. Commerce Department approval.
- The GPUs will support AI models from OpenAI, Anthropic, open-source projects, and Microsoft.
- This shipment is part of Microsoft’s $15.2 billion investment in UAE technology, reflecting strong AI usage there.
- The UAE’s chip access is linked to its $1.4 trillion pledge to U.S. energy and AI projects, despite its annual GDP being about $540 billion.
- The deal contradicts former President Trump’s statements that the most advanced AI chips would not be allowed overseas.
Microsoft announced it will deliver 60,000 Nvidia (NVDA) Artificial Intelligence (AI) chips to the United Arab Emirates (UAE), after receiving approval from the U.S. Commerce Department. The move is part of Microsoft’s recent investment strategy targeting advanced technology in the UAE.
The GPUs, which are specialized processors used to accelerate AI computations, will be used to provide access to AI models from OpenAI, Anthropic, open-source developers, and Microsoft itself, according to a company statement. This initiative is included in Microsoft’s broader $15.2 billion technology investment in the UAE.
The UAE has one of the highest rates of AI use per person, according to Microsoft. The UAE ambassador to the U.S., Yousef Al Otaiba, described the agreement as establishing a new “Gold Standard” for securing AI technologies, including models, chips, and data access. The UAE’s access to these chips corresponds to its commitment to invest approximately $1.4 trillion in U.S. energy and AI projects, a considerable amount given the country’s annual GDP is roughly $540 billion.
Last week, Microsoft posted better-than-expected third-quarter earnings, yet its shares dropped by up to 5%. The announcement of the Nvidia chip deal helped push Microsoft shares slightly higher at the start of the new week, a key period for the technology sector, especially with Tesla’s upcoming shareholder event.
This decision by Microsoft contrasts with comments made by former U.S. President Donald Trump, who stated in an interview that he would not allow Nvidia’s most advanced AI chips to be sold internationally. Asked about sales to China, Trump said, “The most advanced, we will not let anybody have them other than the United States.” The current shipment to the UAE illustrates a departure from that stance.
For more details on the broader market context, see Trump’s interview on 60 Minutes and the related technology investments.
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