The United States has authorized the export of some of the world’s most advanced artificial-intelligence chips to leading technology firms in Saudi Arabia and the United Arab Emirates, marking one of Washington’s most consequential approvals in the global AI race. The decision signals a shift in U.S. strategy toward regional partners, where geopolitical alignment, energy cooperation, and emerging AI ambitions increasingly intersect.

A Major U.S. Green Light for AI Hardware Transfers

The U.S. Commerce Department confirmed that it has approved the export of ultra-advanced Nvidia Blackwell chips — equivalent to as many as 35,000 units — to Abu Dhabi–based G42 and the Saudi government-backed AI initiative Humain. The value of the approved hardware is estimated at around $1 billion, although exact pricing varies based on configuration.

The authorizations come with strict security, reporting, and compliance conditions, reflecting Washington’s intent to maintain oversight of how the chips are deployed. Both G42 and Humain have been under heightened scrutiny in recent years as Middle Eastern governments deepen their investments in AI infrastructure, sovereign data centers, and cloud expansion.

While this is one of the largest AI-chip transfers ever approved for the region, it signals a more calibrated U.S. approach: enabling strategic partners to accelerate their AI development while preventing technology leakages to rival nations, especially China.

Saudi Arabia’s Accelerating AI Ambitions

Humain — one of Saudi Arabia’s flagship AI ventures — said earlier Wednesday that it plans an even larger acquisition of up to 600,000 Nvidia chips as part of its long-term national AI build-out. Saudi Arabia’s broader strategy, aligned with Vision 2030, is to transform the kingdom into a global AI hub, anchored by hyperscale data centers, sovereign computing assets, and partnerships with Western tech giants.

Humain’s collaboration with Elon Musk’s xAI adds another layer of ambition. The two entities intend to co-develop high-capacity data-center infrastructure in the kingdom, including a 500-megawatt facility — one of the region’s largest. The scale underscores Saudi Arabia’s effort to secure the computing power needed for frontier-model development, robotics, and next-generation enterprise AI systems.

The UAE’s Role as a Regional AI Powerhouse

For the UAE, the approvals strengthen the position of G42, which has already emerged as a leading AI champion in the Gulf. Over the past two years, G42 has expanded collaborations with major Western firms, increased investment in AI-first healthcare and industrial technologies, and committed to distancing its operations from Chinese suppliers in response to U.S. national-security concerns.

The U.S. decision could further integrate Abu Dhabi into American-aligned AI ecosystems, particularly in cloud computing, chip manufacturing supply chains, and regulated AI research frameworks. For Washington, enabling the UAE to scale its AI stack reduces reliance on non-Western technology providers and strengthens long-term strategic alignment.

Geopolitical and Market Implications

The approval reflects the emerging power balance in AI, where advanced chips have become instruments of geopolitical influence. For the U.S., enabling Saudi Arabia and the UAE to scale AI capacity aligns with broader strategic objectives: countering China’s growing digital influence, securing new commercial markets, and ensuring that the Middle East’s largest economies remain tied to U.S. technology standards.

But the move also raises questions about data governance, dual-use risk, and the rapid militarization of AI. With sovereign data centers expanding and national AI models in development, Washington is likely to face increasing pressure to manage oversight while sustaining partnerships.