Trump Backs Massive Middle East AI Hub to Counter China
President Donald Trump has signed off on a major agreement with the United Arab Emirates to build the largest artificial intelligence campus outside the United States. The deal lifts earlier restrictions that had blocked the Gulf nation's access to advanced U.S. chips over concerns they could be diverted to China.
Finalized during Trump's visit to the Middle East, the agreement represents a diplomatic and technological breakthrough. It signals renewed confidence by the U.S. that key allies such as the UAE can be trusted to handle sensitive AI hardware-provided strict oversight and American involvement are in place.
Newsweek has reached to the U.S. Commerce Department and UAE's foreign ministry for comment.
The agreement marks a sharp turn from the Biden-era policy, which limited chip exports to nations seen as too close to China. The Trump administration has taken a more flexible approach, emphasizing containment of Chinese influence while expanding tech collaboration with partners in the Gulf. By allowing the UAE access to top-tier AI technology, Washington aims to outpace Beijing in shaping the global AI landscape. The new deal seeks to embed U.S. standards in regional infrastructure without forcing nations to choose between superpowers outright.
At the center of the pact is a 10-square-mile AI campus in Abu Dhabi, backed by 5 gigawatts of power-enough to support around 2.5 million of Nvidia's flagship B200 chips, according to estimates by Rand Corporation analyst Lennart Heim. The U.S. Commerce Department called the initiative the largest AI infrastructure project to date.
UAE state-linked firm G42 will construct the site, but American companies will operate it and provide U.S.-managed cloud services across the region. The White House said the UAE has committed to building or financing equivalent data centers in the U.S., while also aligning its national security policies with American standards.
Despite recent reforms, concerns remain over China's influence in the UAE. G42 has removed Chinese hardware and shed investments under U.S. pressure, yet firms such as Huawei and Alibaba Cloud still maintain a presence. U.S. officials have also flagged the risks of technology leakage through infrastructure still using Chinese components or software.
Trump officials say the new agreement includes safeguards to prevent such diversions. Trump's AI czar David Sacks said in Riyadh this week that Biden-era controls were "never intended to capture friends, allies, strategic partners."
Rand Corporation analyst Lennart Heim wrote on X: "That's bigger than all other major AI infrastructure announcements we've seen so far. That is enough power to support 2.5 million of Nvidia's top-line B200 chips."
A White House statement read: "Commitments by the UAE to further align their national security regulations with the United States, including strong protections to prevent the diversion of U.S.-origin technology."
The AI campus is expected to begin operations later this year, with the UAE preparing to import up to 500,000 Nvidia chips annually as part of the agreement. The project signals a deepening U.S. presence in Middle East tech infrastructure and a possible new chapter in global AI competition.
Related Articles
Satellite Photo Shows US Aircraft Carrier at China's DoorstepChina's Space Projects on US Doorstep Have Military WorriedPhotos Show How North and South Korea Train Special ForcesPanama Asks Trump to Clean Up Mess Left From Biden-Era Migration Surge
2025 NEWSWEEK DIGITAL LLC.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Insider
29 minutes ago
- Business Insider
The U.S. Stock Market Has Made an Impressive Comeback, but Will It Last?
The U.S. stock market has made an impressive comeback since its April slump. In fact, the S&P 500 (SPY), which plunged into correction territory following President Trump's historic tariffs, is now up over 19% from its April low. Carson Group's Ryan Detrick sees this early-year bottom as a sign that 2025 could still finish with strong gains. He compared the current setup to market comebacks in 2009 and 2020, when early-year declines of over 15% were followed by double-digit rallies. '2025 bottomed in April and the slingshot effect is in full motion,' Detrick said. Confident Investing Starts Here: However, some market experts are not as optimistic. Indeed, Dan Niles, the founder of Niles Investment Management, believes that while the current rally could push stocks to new record highs in the short term, risks are building for later this year. He argues that both consumers and corporations have been pulling demand forward to get ahead of price hikes, which may have artificially boosted near-term strength. For example, Niles pointed to when Apple (AAPL) rushed its shipments of iPhones from China to avoid paying tariffs. Looking ahead, Niles warned that the market is overlooking some troubling signals, such as rising Treasury yields and a weakening U.S. dollar. He expects that as the holiday season approaches and the effects of pulled-forward demand fade, stocks could face another sharp downturn. 'The further we get into the year, [investors should] get a lot more cautious and expect another big downdraft,' Niles said. As a result, he is maintaining a defensive portfolio and raising cash in order to prepare for potential volatility. There is no doubt that the next several months will test whether this rally has staying power or if it's running on borrowed time. Is SPY a Buy Right Now? Turning to Wall Street, analysts have a Moderate Buy consensus rating on SPY stock based on 419 Buys, 79 Holds, and seven Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average SPY price target of $663.03 per share implies 10.6% upside potential.
Yahoo
32 minutes ago
- Yahoo
Supreme Court Grants Musk-Less DOGE Access to Social Security Data
Elon Musk may be persona non grata at the White House, but DOGE lives on. The Supreme Court ruled on Friday that the Department of Government Efficiency should be allowed access to Social Security Administration data, lifting a previously issued injunction that blocked the department from doing so. While the court's majority did not provide a detailed explanation of their ruling, they did write, 'We conclude that, under the present circumstances, SSA may proceed to afford members of the SSA DOGE Team access to the agency records in question in order for those members to do their work.' The three liberal justices dissented, with Justice Ketanji Brown Jackson questioning the urgency of the application and expressing concerns about the potential privacy risks that would result from the ruling. She wrote, 'In essence, the 'urgency' underlying the government's stay application is the mere fact that it cannot be bothered to wait for the litigation process to play out before proceeding as it wishes.' The Trump administration had previously argued that DOGE employees needed access to SSA data in order to halt fraudulent payments, but a federal judge in Maryland ruled that DOGE being granted such access violated federal law and put millions of people's data at risk. Two unions—the American Federation of State, County and Municipal Employees, and the American Federation of Teachers—brought the lawsuit alongside the Alliance for Retired Americans. The groups argued that allowing DOGE broader access to individuals' personal data would violate the Privacy Act and the Administrative Procedure Act. 'The agency is obligated by the Privacy Act and its own regulations, practices, and procedures to keep that information secure—and not to share it beyond the circle of those who truly need it," their lawyers wrote. The data DOGE employees now have access to includes Social Security numbers, medical records, and tax and banking information. In her dissent, Jackson argued that the Supreme Court had 'truly lost its moorings,' by allowing the move and bending its usual standards to accommodate the Trump administration, adding, 'The Court is… unfortunately, suggesting that what would be an extraordinary request for everyone else is nothing more than an ordinary day on the docket for this Administration.'
Yahoo
32 minutes ago
- Yahoo
Rogan reacts live to Elon's 'crazy' Epstein accusation against Trump while interviewing FBI director
Podcaster Joe Rogan was shocked as he read billionaire Elon Musk's wild allegations against President Donald Trump on Thursday. Musk dropped a bomb on social media when he alleged Trump was in the Jeffrey Epstein files after a series of escalating back-and-forth social media messages between him and the president. This accusation occurred as part of a larger tirade against Trump and Republican leaders over the "Big Beautiful Bill." In the episode, which was recorded Thursday but released Friday, a "Joe Rogan Experience" producer interrupted the host's live interview with FBI director Kash Patel to inform him of Musk's Epstein tweet. Watch: Republicans Rally Behind Trump, Continue To Support Musk Amid 'Big, Beautiful' Brawl Rogan read the tweet out loud, "'Time to drop the really big bomb Donald Trump is in the Epstein files, that's the real reason they have not been made public, have a nice day.' "Jesus Christ," he said in shock. Read On The Fox News App "I'm not participating in any of that conversation," Patel said. "Someone should take his phone away," Rogan said as he marveled at Musk's tweet. "Jesus Christ, that's a crazy thing to say. How does he know? Does he know that Donald Trump is in the Epstein files? Does he have access to the Epstein files?" "I don't know how he would," the FBI director said, again insisting he would stay out of the feud. "What the f--- are they doing?" Rogan asked. "I understand he owns Twitter, I think it's bad for your mental health," Rogan said. "I think posting things public all day and arguing with people all day is bad for you." Click Here For More Coverage Of Media And Culture "This is an unfortunate episode from Elon, who is unhappy with the One Big Beautiful BIll because it does not include the policies he wanted," White House press secretary Karoline Leavitt said. "The President is focused on passing this historic piece of legislation and making our country great again." The White House said a source familiar with the Epstein matter said it is widely known that Trump kicked Epstein out of his Palm Beach Golf Club. The source also pointed out that the administration released the Epstein files, which included Trump's name, and nothing was new about Musk's revelation. "If Elon truly thought the President was more deeply involved with Epstein, why did he hang out with him for 6 months and say he 'loves him as much as a straight man can love a straight man?'" the source said. Shortly after Musk posted about Trump being in the Epstein file, Trump posted his response to Truth Social. "I don't mind Elon turning against me, but he should have done so months ago. This is one of the Greatest Bills ever presented to Congress," Trump said, turning his attention to the "big, beautiful bill" that is before the Senate. "It's a Record Cut in Expenses, $1.6 Trillion Dollars, and the Biggest Tax Cut ever given. If this Bill doesn't pass, there will be a 68% Tax Increase, and things far worse than that." "I didn't create this mess, I'm just here to FIX IT. This puts our Country on a Path of Greatness. MAKE AMERICA GREAT AGAIN!" the president article source: Rogan reacts live to Elon's 'crazy' Epstein accusation against Trump while interviewing FBI director
