Trump announces 'very big contract' for UAE to buy AI chips on last leg of Gulf trip
US President Donald Trump capped his whirlwind tour of the Gulf by announcing $200bn in deals with the United Arab Emirates and "a very big contract" for the Gulf state to buy advanced Artificial Intelligence chips.
The list of deals with the UAE includes the type of traditional commercial agreements the US often signs with Gulf rulers, according to the White House.
The UAE's Etihad Airways committed to buy $14.5bn worth of Boeing 787 and 777x aircraft with General Electric engines. ExxonMobile, Occidental Petroleum and EOG Resources said they would partner with Abu Dhabi National Oil Company to expand oil and natural gas production in a deal valued at $60bn.
A $4bn dollar project by Emirates Global Aluminium appeared to especially draw Trump's attention, which he used to praise his tariff policy. The company said it would open the first aluminium smelter in the US since 1980.
'Here's a big, very special project,' Trump said on Thursday.
New MEE newsletter: Jerusalem Dispatch
Sign up to get the latest insights and analysis on Israel-Palestine, alongside Turkey Unpacked and other MEE newsletters
'Investing $4bn in Oklahoma. See, they are doing all of this work in the US with the aluminium…if they do it here (the UAE) they have to pay a big tariff to send it in… you're going to make it in the US. That's amazing," he added.
The US also said it secured a $1.4 trillion investment pledge from the UAE over ten years, but like other pledges announced by Trump, it's unclear if it will materialise. That figure is more than 200 percent of the UAE's annual GDP.
But it's the deals announced around AI that have drawn the most attention.
'Yesterday, the two countries also agreed to create a path for the UAE to buy some of the world's most advanced AI semiconductors from American companies, it's a very big contract,' Trump said while attending the US-UAE Business Council breakfast on Friday.
The UAE and Saudi Arabia appear on the cusp of purchasing millions of AI chips from US companies and using American technology to build Data centres.
The sale of such huge quantities of AI chips to the Gulf has sparked a rally in semiconductor stocks, but is becoming a contentious issue in Washington.
Trump gives tech stocks their first Gulf-driven rally Read More »
On Thursday, the US and UAE signed an agreement for the Gulf country to build the largest AI campus outside the US. The UAE's state-owned tech group, G42, plans to operate the campus.
The New York Times reported that Nvidia would sell hundreds of thousands of the most advanced chips annually to the UAE, as it builds the data centre hubs. According to the report, the vast majority of the chips would go to US cloud service providers, and about 100,000 to G42.
US chipmaker Qualcomm also announced plans to help develop a new 'global engineering center' in Abu Dhabi.
The deals depend on the Trump administration allowing the UAE to import potentially up to one million advanced semiconductors manufactured by US companies.
The Biden administration severely restricted which chips the Gulf states could buy. The UAE and Saudi Arabia lobbied the Trump administration in recent months to address concerns that they could be trusted with American products and not leak the technology to China.
Earlier this week, Trump's Department of Commerce (DOC) said it was cancelling the Biden administration's "AI Diffusion Rule", which restricted chip exports, calling it 'misguided'.
On Thursday, the DOC announced the establishment of a "US-UAE AI Acceleration Partnership' to establish a framework to protect US technology.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Arabian Post
18 minutes ago
- Arabian Post
U.S.-China Trade Talks In London Form The Basis Of Early Agreement On Contentious Issues
By Nitya Chakraborty The high level delegations of United States of America and China concluded their two day trade talks in London on Tuesday agreeing to take forward the course of negotiations for further promoting steady and healthy development of economic and trade ties between the two largest economies of the world. Both Chinese and U.S. sources underlined that the London talks were based on the guidelines set through phone conversations between President Trump and President Xi Jinping on June 5 as also the understanding arrived at the earlier meeting in Geneva last month. In fact following the Geneva meeting last month, the Chinese side made lot of complaints that the U.S, agencies have been violating many of the principles agreed to at the Geneva meeting and this was hampering the proper implementation of the Geneva understanding. Chinese President's office communicated this to the President Trump's office and finally Trump spoke directly to President Xi Jinping on June 5 and discussed a few guidelines for trade discussions scheduled in London on June 9 and 10. Now this London agreement based on that June 5 guidelines set by the two Presidents will be taken forward for further finetuning at the next meeting to be scheduled soon. U.S. sources say that the areas of discussions are so vast and the items are so many that a full fledged deal will take a few more sources have hinted that the Trump administration is really keen in arriving at an early deal with China. So, the U.S. side will abide by the London agreement in the interests of normal trade relations between both the countries. According to a latest survey released by the American Chamber of Commerce in China, although tariffs pose rising challenges to US companies in China, most companies are not planning to exit China, with none reporting shifting production back to the US. Chinese sources say that China is maintaining strategic patience in talks with the U.S. officials as there are some structural trade conflicts and these require time consuming discussions. On Monday morning, China released the trade data for the first five months of 2025. China's total goods imports and exports in yuan-denominated terms rose to 17.94 trillion yuan ($2.5 trillion) in the first five months of 2025, up 2.5 percent year-on-year, official data showed Monday. The continuous growth in foreign trade underscores the resilience of the world's second largest economy, with supply chain and industry chain remaining competitive in response to the world market demand, despite global headwinds highlighted by unilateralism, a Chinese expert said. 'Since the beginning of this year, China's economy has continued to recover and improve. Under external pressure, the country's goods trade has maintained strong resilience. By May, China's imports and exports continued their growth trend, with the growth rate accelerating notably after the high-level China-US economic and trade talks,' said Lü Daliang, a GAC spokesperson, Xinhua reported on Monday While China's foreign trade generally saw a positive growth, uncertainties remain, as reflected in some trade figures. Media reported that last month, goods exports rose 6.3 percent year on year, while imports went down 2.1 percent. China-US trade decreased by 8.1 per cent year on year basis to1.72 trillion yuan during the first five months of 2025, according to Chinese customs data. Li Changan, a professor at the Academy of China Open Economy Studies at the University of International Business and Economics, told the Global Times on Monday that data from May shows that while China's foreign trade remained generally stable, some fluctuations did occur, likely linked to the trade tensions. 'China's import and export growth accelerated significantly following recent high level trade talks between China and the US in Geneva. This suggests a rebound in foreign trade after the joint statement, partially offsetting the negative impact of the trade dispute and helping maintain overall trade stability,' Li said, adding that challenges persist as businesses expect more predictability in world trade. The trend in China-US trade data was 'expected,' as even though China and the US reached an agreement to significantly reduce reciprocal tariffs during the Geneva talks in May, US tariffs on Chinese goods remain high, prompting Chinese foreign trade companies to made adjustments by exploring alternative markets to reduce their reliance on the US, Huo Jianguo, a vice chairman of the China Society for World Trade Organization Studies in Beijing, told the Global Times on Monday. The United States and China have a substantial trade relationship, with China being a major trading partner and a significant export market for the US. In 2024, total US-China trade in goods reached an estimated $582.4 billion, with US exports to China at $143.5 billion and imports from China at $438.9 billion, resulting in a trade deficit of $295.4 billion. China is the third-largest export market for the US, behind Canada and Mexico. It is interesting that Chinese policy makers are making special efforts to woo the European Union in both political and trade areas by taking advantage of the current fissures in US-EU relations. The idea is to project China as a defender of multilateral trading as also WTO norms as against the unilateralism being followed by the US President Donald Trump. However, there have been many setbacks to China-EU relations also. This month, the EU has taken steps to restrict Chinese medical devices from participating in its public procurement market, which was firmly opposed by the Chinese side. Recently, negative hype against China has increased in Europe. Following the 'China spy' case and the so-called lobbying scandal related to Huawei, the Czech Republic openly accused China of launching a cyberattack against it, and the EU and NATO followed suit. Even after a major power outage in Europe, solar power inverters produced in China were questioned by some for 'cybersecurity risks.' In the recent days, China and Europe have conducted intensive diplomatic interactions. President Xi Jinping spoke with French President Emmanuel Macron and German Chancellor Friedrich Merz respectively, Vice Premiers He Lifeng and Liu Guozhong visited Europe successively, the Danish and Dutch foreign ministers visited China successively, and Foreign Minister Wang Yi spoke with the German and Polish foreign ministers. Vice Premier He Lifeng is currently in London on an official visit to the UK. He will be having intensive discussions on trade and political issues with the British Prime Minister Keir Starmer. The European Parliament and China have decided to simultaneously and comprehensively lift restrictions on mutual exchanges, further sending a positive signal for expanding exchanges between the two sides. It's reported that European Council President Antonio Costa and European Commission President Ursula von der Leyen will also visit China in July to hold meetings with Chinese leaders. Chinese experts say that such setbacks are not unexpected taking into account the policies of EU members but still cooperation and collaboration are possible. China is interested in that. Over the past 50 years since establishing diplomatic relations, China and the EU have formed a strong economic symbiotic relationship, with annual trade increasing from $2.4 billion to $785.8 billion – a growth of over 300 times. Both sides have engaged in productive multilateral coordination and cooperation in areas such as climate change. Both Chinese and EU sources say these collaborations have not only brought tangible benefits to nearly 2 billion people on both sides but have also made significant contributions to maintaining global stability and prosperity. In the current complex international situation, the China-EU relationship holds even greater strategic significance and global influence. The Chinese perception is that the development of China-EU relations demonstrates that the two sides can fully respect each other, engage in equal dialogue, complement each other's strengths, and achieve mutual success. The world is changing, but the fundamental fact that cooperation between China and the EU far outweighs competition, that consensus far exceeds differences, and that opportunities far exceed risks remains unchanged. (IPA Service)
The National
an hour ago
- The National
Former CIA analyst who leaked papers on Israeli strike given 37 months in prison
A former CIA analyst who leaked top secret US intelligence documents about Israeli military plans for a retaliatory strike on Iran was sentenced to 37 months in prison on Wednesday, the Justice Department said. Asif Rahman, 34, who worked for the Central Intelligence Agency since 2016 and held a top-secret security clearance, was arrested by the FBI in Cambodia in November. In January, Rahman pleaded guilty at a federal court in Virginia to two counts of wilful retention and transmission of national defence information. He faced a possible sentence of up to 20 years in prison. Iran unleashed a wave of almost 200 ballistic missiles on Israel on October 1 in retaliation for the killings of senior figures in the Tehran-backed Hamas and Hezbollah militant groups. Israel responded with a wave of strikes on military targets in Iran in late October. According to a court filing, on October 17 Rahman printed out two top-secret documents "regarding a United States foreign ally and its planned kinetic actions against a foreign adversary". He photographed the documents and used a computer program to edit the images in "an attempt to conceal their source and delete his activity", it said. Rahman then transmitted the documents to "individuals he knew were not entitled to receive them" before shredding them at work. The documents, circulated on the Telegram app by an account called Middle East Spectator, described Israeli preparations for a possible strike on Iran but did not identify any actual targets. According to The Washington Post, the documents, generated by the US National Geospatial-Intelligence Agency, described aviation exercises and movements of munitions at an Israeli airfield. The leak led Israeli officials to delay their retaliatory strike.
The National
2 hours ago
- The National
US could soon lift international student visa restrictions
The administration of US President Donald Trump may soon end its temporary restrictions on international student visa applications, a move sure to bring relief to prospective scholars who had secured spots at US universities. Secretary of State Marco Rubio last month told embassies and consulates around the world to pause new foreign student interviews as the State Department implemented enhanced screening of applicants' social media histories. Mr Rubio also said he would cancel visas for Chinese students with connections to the Chinese Communist Party or who are studying in critical fields. But on Wednesday, Mr Trump said Chinese students would be allowed to attend US colleges and universities as part of trade negotiations with Beijing. "We will provide to China what was agreed to, including Chinese students using our colleges and universities," he said on Truth Social. The Trump administration has taken particular aim at Harvard University, barring it from enrolling international students. Mr Trump has claimed the elite college has too many international students and has harboured anti-Semitism. A judge last month blocked his action against Harvard. The various directives and decrees relating to international students threw thousands of people's plans into disarray, leaving them uncertain as to whether they would be able to start their courses in the new academic year. On Tuesday, State Department spokeswoman Tammy Bruce suggested that embassies and consulates would soon resume interviews for international student visas and said people should start looking for interview spots to open. "People should watch for those spaces to be open, should continue to apply. This is not going to be a lengthy or an ongoing dynamic," Ms Bruce told reporters. "It was meant for a specific, almost an administrative adjustment." She said the interview pause was to ensure embassies and consulates knew what to expect in terms of additional vetting. "And that process, we were told, would be rapid," Ms Bruce said. A protracted delay in student visas would hurt universities that rely heavily on foreign students' tuition fees. In 2023-24, the US hosted an all-time high of 1.1 million international students. About 90,000 are from the Arab World, according to estimates, while more than 300,000 are Indian. The Trump administration's clampdown on international student visa processing caused dismay across campuses in the US and among people hoping to study here. Dechen Parkel, 21, who is studying at George Washington University in the US capital, said reducing international student numbers would impact campus life for domestic students too. The university enrols about 2,800 students. "We live in a world where it's like, we're all connected," he said. "It would be sad to see them go, because I just think it's such a cool part of [Washington] DC. ... Being able to interact with people from different cultures is what makes college worth it." An international student at Harvard said the moves against the university and international students had been demoralising. "I feel like the visa ban is nonsense as it deprives the smartest students in the country to reach their full potential and finish their studies, and it turns the 'American dream' into an American nightmare," he said. "Morale is definitely down among students as we are all scared not knowing what will come next, but we're more united than ever. He said the changing visa regulations had impacted him personally as he is now afraid to leave the US over fears he would be denied re-entry. China is the second-largest country of origin for international students in the US, behind only India. In the 2023-2024 academic year, more than 270,000 international students were from China, making up about a quarter of all foreign students in the US.
