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UAE and US agree on path for Abu Dhabi to buy most advanced AI chips, Trump says

News Mania Desk / Piyal Chatterjee / 16th May 2025

On Friday, U.S. President Donald Trump announced that the United Arab Emirates and the United States have reached an agreement to establish a pathway for the Gulf nation to purchase advanced artificial intelligence semiconductors from American firms.

The agreement, concluded on Thursday during Trump’s trip to Abu Dhabi, represents a significant success for the UAE, which has been seeking to manage its ties with its traditional ally the U.S. and its primary trading partner China.

It reflects the Trump administration’s confidence that the chips can be managed securely, in part by requiring data centres be managed by U.S. companies.

“We’re making great progress for the $1.4 (trillion) that UAE has announced it intends to spend in the United States,” Trump said, speaking during the last stop of a multi-day tour of Gulf states that included stops in Saudi Arabia and Qatar.

“Yesterday the two countries also agreed to create a path for UAE to buy some of the world’s most advanced AI semiconductors from American companies, a very big contract,” he said.

“This will generate billions and billions of dollars in business and accelerate the UAE’s plans to become a really major player in artificial intelligence,” Trump added.

In March, the UAE pledged a 10-year, $1.4 trillion investment plan in the United States targeting sectors like energy, AI, and manufacturing.

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