U.S. exports approval for Microsoft to ship advanced Nvidia AI chips to the United Arab Emirates, approved for the first time late last year, represents a significant development in the U.S.-UAE technology partnership and AI collaboration. The export license, issue washe Trump administration, allows Microsoft to dispatchships newest GB300 GPUs —the equivalent of 60,400 A100 chips —to the of tpment enablUAE to achieve its goal of becoming a global AI hub by allowing it to acquire some of the world’s most advanced AI models, including those from OpenAI, Anthropic, open-source providers, and Microsoft itself.
Background and Details
Microsoft stated that it has satisfied the rigorous cybersecurity, physical security, and other technology protections required by the U.S. Government, and has obtained export licenses from the U.S. Commerce Department. As of September 2025, Microsoft secured the permits under the Trump administration; for the first time, advanced AI chip exports to the Gulf region are permissible.
Microsoft claimed that it has met all strict cybersecurity, physical security, and other technology safeguards demanded by the U.S. Government and has thus acquired export licenses issued by the U.S. Commerce Department. By September 2025, it had obtained the permits during the Trump administration, with the first renewed to make possible the export of its advanced AI chips to the Gulf region.
Strategic Impact
Such technologies are widely used in the UAE for artificial intelligence, with 59.4% of the country’s Government rapidly seeking to engage with the regulated. Only Singapore boasts a higher contribution, for example. Since the technology has received regulatory approval, following its investment in this cutting-edge technology, Microsoft is a leading player in AI expansion in the Middle East. Another thing is that the Obama administration’s decision to approve the scoring and marketing of advanced technology to a regional partner ensured that it did not spread.
Broader Context
As part of a broader bilateral AI agreement that the U.S. and UAE entered into in May 2025, the UAE agreed to inject billions of dollars into the United States. In return, the U.S. decided to ease export constraints that had until now hampered the delivery of AI chips. The package also includes a governance structure for cloud infrastructure run by accredited American operators in the UAE, and shipping at least specific from-scratch shipments for Abu Dhabi’s G42 technically remains restricted for the time being.
This deal is seen as a key step in the growth of AI infrastructure in the Gulf region. It sets a standard for future technology exports and makes the UAE a major center of AI innovation worldwide.
Financial Market Reaction
After the news broke, Nvidia’s shares rose about 1.97% in premarket trading. This shows that investors are hopeful about increased chip sales to the UAE and greater opportunities for AI growth.