Nearly five months after its unveiling, the US–UAE AI chip pact remains stalled. Nvidia’s chief executive Jensen Huang and several American officials have voiced frustration as regulatory, investment, and geopolitical hurdles slow progress on one of the most high-profile technology agreements of 2025.
The deal, announced in May during Donald Trump’s visit to Abu Dhabi, promised to deliver hundreds of thousands of advanced Nvidia processors to the United Arab Emirates each year. In return, the UAE was expected to channel significant investment into US technology infrastructure, with commitments potentially worth billions of dollars. It was billed as a flagship of the administration’s push to loosen export controls and cement AI partnerships in the Middle East.
According to the Wall Street Journal, both Nvidia and senior members of the administration are now privately alarmed by the lack of progress. Huang, who had stood alongside Trump in Abu Dhabi when the agreement was unveiled, is reported to have pressed for faster execution. Some US officials, meanwhile, are said to be baffled at the absence of follow-through on the Emirati side, particularly on the investment pledges that were intended to precede chip shipments.
The Commerce Department must approve export licences before any shipments can take place, and regulators remain cautious. Concerns over national security and technology transfer risks have been amplified by the UAE’s past links with Chinese partners, including the artificial intelligence company G42, which has previously drawn scrutiny in Washington. These issues have made the deal more complex than the celebratory announcement in May suggested.
Commerce Secretary Howard Lutnick has emerged as a central figure in the dispute. People familiar with the matter told the Journal that Lutnick has insisted on a strict sequence: UAE investment first, chip exports second. His stance has reportedly slowed implementation, though his office has denied any suggestion of deliberate obstruction.
The delay highlights the challenges facing Trump’s attempt to recalibrate US export strategy. While the president has signalled openness to selling more advanced processors abroad — including reports earlier this year that over a million Nvidia chips could eventually be exported to the UAE — each transaction requires balancing commercial opportunity with security risks. Washington’s allies in the Gulf, meanwhile, are eager to develop large-scale AI capacity, with the UAE announcing plans in May to build what it said would be the largest AI campus outside the United States.
For Nvidia, the deal represents both prestige and profit. The California-based company has dominated the global market for AI processors and sees sovereign partnerships as a new channel for expansion. Yet prolonged uncertainty over a deal as high-profile as the UAE arrangement underscores the complexity of operating in the current geopolitical environment.
As of October, no timeline has been confirmed for the release of chips or the corresponding Emirati investment. Officials in both countries have continued to express public support for the agreement, but the path to execution remains unclear. Investors and industry watchers will be watching closely to see whether the deal can proceed without further delay — or whether it becomes another flashpoint in the contested global race for AI technology.
