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A shift in US export policy could soon give Gulf states access to coveted AI chips, potentially redrawing the global artificial intelligence landscape. The move raises questions about technology transfer risks and regional stability as Middle Eastern nations vie for AI dominance.
The Trump administration plans to send hundreds of thousands of advanced AI chips to the Middle East, breaking sharply with previous US restrictions. The deals could make the UAE and Saudi Arabia major players in global artificial intelligence – if security concerns don't derail them first.
David Sacks, the White House AI advisor, leads negotiations with G42, the UAE's ambitious AI firm. The deal would give G42 direct control of US-designed chips, despite past scrutiny over its Chinese connections. G42's chairman Sheikh Tahnoon bin Zayed Al Nahyan met with Sacks recently to discuss "strengthening economic ties."
Saudi Arabia stands ready for its own chip windfall. The kingdom just launched Humain, a new AI company chaired by Crown Prince Mohammed bin Salman. The timing matches Trump's Middle East tour, where he's expected to announce major tech deals with both nations.
Tech giants flock to Riyadh
The chips come from industry leaders Nvidia and AMD. These processors power the most advanced AI systems – the kind that can process human language, analyze images, and make complex decisions. Access to this hardware could help Gulf states break into AI's big leagues.
Tech leaders see opportunity. OpenAI's Sam Altman pushed for increased regional chip access. Microsoft invested $1.5 billion in G42 last year. Even Elon Musk and Mark Zuckerberg head to Riyadh this week for deal announcements.
Biden-era restrictions fall
The shift marks a clear break from Biden-era policies. While Biden officials demanded strict oversight and limited exports, Trump favors direct dealings with Gulf governments. His team bets that stronger tech ties will cement US influence in a region racing to move beyond oil.
Gulf billions flow to US
Money talks. Saudi Arabia pledged $600 billion in US investments over four years. The UAE's sovereign wealth funds pour billions into American tech. Both countries see AI as key to their economic future.
But security experts raise red flags. Congress investigated G42 just last year over its Chinese partnerships. Some fear these chips could help China advance its AI capabilities through backdoor connections.
The deals also worry those who track human rights. Both Saudi Arabia and the UAE face criticism over surveillance and political repression. Advanced AI could strengthen their control.
Gulf states defend tech push
Gulf leaders counter that they're building legitimate tech industries. They point to partnerships with American companies and increasing transparency. The UAE especially positions itself as a responsible AI developer.
New rules reshape tech trade
The changes reach beyond chips. Trump plans to scrap Biden's broad export caps in favor of country-by-country deals. The Middle East serves as testing ground for this new approach.
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