President Donald Trump’s strategic tour across the Middle East has ignited internal discord within his administration, as China-focused officials express concern over expansive artificial intelligence agreements with Saudi Arabia and the United Arab Emirates . These deals, involving the acquisition of advanced semiconductors from U.S. firms Nvidia and Advanced Micro Devices , are perceived by some as potential threats to national security and economic interests.
During his visits, Trump facilitated agreements for Saudi Arabia and the UAE to procure tens of thousands of high-performance AI chips. These semiconductors are crucial for developing and training sophisticated AI models. The UAE, for instance, has secured a preliminary agreement to import 500,000 of Nvidia’s top-tier AI chips annually, aligning with its ambition to become a global AI hub. Similarly, Saudi Arabia has launched Humain, an AI investment firm backed by the Public Investment Fund, securing deals with Nvidia, AMD, Qualcomm, and AWS.
These initiatives are part of broader efforts by Gulf nations to diversify their economies and reduce dependence on oil revenues through technological innovation. The UAE’s partnership with U.S. companies includes plans to build a vast AI data center in Abu Dhabi, operated by Emirati firm G42, which will eventually support over 2 million next-generation Nvidia chips. Saudi Arabia’s King Abdullah University of Science and Technology has also invested heavily in acquiring Nvidia’s H100 chips, essential for running sophisticated AI applications.
However, these developments have raised alarms among U.S. officials concerned about the potential for sensitive technology to reach adversarial nations. The deepening ties between Middle Eastern countries and China, including investments into Chinese tech companies like Alibaba and SenseTime, pose geopolitical risks. There is apprehension that these AI advancements could inadvertently erode Israel’s military advantage in the region, a longstanding U.S. commitment.
The Trump administration’s decision to ease export restrictions on advanced AI technologies, reversing previous policies that limited such exports to close allies, has further fueled the debate. While this move opens broader international markets for U.S. tech firms, it also introduces volatility and potential vulnerabilities, especially concerning the prevention of sensitive technology from reaching China.
Critics argue that the transactional nature of these deals, emphasizing economic pragmatism over traditional alliances and values, could undermine America’s global influence and long-term interests. The administration’s focus on immediate economic and security benefits reflects a realist view of a multipolar world where U.S. dominance is waning.
Despite these concerns, the Gulf nations are demonstrating a strong commitment to working with U.S. firms, distancing themselves from Chinese suppliers, and investing heavily in U.S. AI ventures. The UAE’s pledge to invest $1.4 trillion in the U.S. over the next decade and build equivalent data centers in the U.S. underscores the strategic and technological ties between the countries.
