Trump Administration Reluctant to Supply NVIDIA’s Advanced AI Chips to Middle East Due to Concerns Over Tech Transfer to China

Amid the anticipation surrounding President Trump’s visit to the Middle East, the expected advancements in artificial intelligence (AI) deals have hit unexpected hurdles, primarily due to a significant impasse in chip supply to the region.

US Administration’s Concerns Over Potential Tech Transfers to China Amid Billion-Dollar AI Deals

NVIDIA has transformed its operations from being primarily focused on large tech enterprises to actively addressing the growing demand from various nations. This strategic pivot aims to expand AI infrastructure globally, unveiling a lucrative new revenue stream. Initially sparked by Trump’s Middle East visit, NVIDIA anticipated securing “billion-dollar”contracts with state-affiliated firms like G42. These agreements were considered a promising alternative to the company’s shrinking portfolio in China. However, a recent report from Reuters indicates that the United States government remains cautious regarding the supply of chips to Gulf states.

U. S.officials are currently evaluating whether granting access to NVIDIA’s advanced chips to nations such as the UAE and Saudi Arabia might enable an “indirect”technology transfer to China. This apprehension stems from previous incidents where such transfers have occurred, particularly concerning NVIDIA’s Hopper AI accelerators. The Trump administration is grappling with whether it can view the Middle East as a trustworthy partner, especially as these states have been increasing collaboration with China, thus exacerbating the concern over potential technology transfers.

NVIDIA’s ambitious Stargate UAE project aims to deploy nearly 100, 000 chips utilizing GB300 Blackwell AI clusters. Additionally, Gulf nations like Saudi Arabia are launching several initiatives, including notable collaborations with HUMAIN AI. Given their vast oil revenues, these countries have the financial capability to invest significantly in AI infrastructure. However, their dependency on U. S.technology calls for a careful approach to national security from the current administration. As it stands, there is no defined timeline for finalizing these agreements.

The U. S.government may implement stringent restrictions, including a prohibition on employing Chinese technology within AI campuses and a complete halt on accessing Chinese AI talent. While the AI deals are still in their infancy, non-compliance with U. S.stipulations by Gulf states could jeopardize these agreements moving forward.

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