Just when the United Arab Emirates(UAE) thought it was about to score big on the global AI stage with an Nvidia chip deal, the U.S. hit the brakes. A multi-billion-dollar deal that would have allowed the UAE to buy advanced AI chips from Nvidia and other U.S. semiconductor giants is now on hold. The reason? Good ol’ national security.
According to The Wall Street Journal, U.S. officials are worried those shiny, powerful chips might take an unexpected detour, straight into China’s hands. That is a no-go for Washington.
This is not a brand-new concern. When the deal was first proposed, the U.S. flagged the possibility of chip smuggling. The UAE (and even Saudi Arabia) reportedly gave the usual thumbs-up, saying, “Don’t worry, we have got safeguards.” But it seems those promises haven’t entirely eased American nerves.
Related: Why Jensen Huang Says China Cannot Count on Nvidia’s Chips
Meanwhile, the chip paranoia is going global. There’s chatter that the U.S. could expand its chip export restrictions to Thailand and Malaysia, too. Malaysia just made a move, requiring a permit for any U.S.-made AI chip exports starting this week. Translation: No chip gets out without a stamp of approval.
The message from Washington is clear: AI tech is the new oil, and no one wants to accidentally fuel their biggest rival. When billions of dollars, national security, and AI supremacy are in the mix, even allies get side-eyed. The U.S. is not just gatekeeping chips; it is drawing lines in silicon.
