U.S. government approves high-end chip shipments
Microsoft announced on Monday it has obtained export licenses from the U.S. Commerce Department to supply Nvidia AI chips to the United Arab Emirates, marking a significant step in advancing the Gulf nation’s artificial intelligence capabilities.
The approval, granted in September under President Donald Trump’s administration, allows Microsoft to ship the equivalent of 60,400 additional A100 chips, including Nvidia’s advanced GB300 GPUs. According to Microsoft, the decision was based on “updated and stringent technology safeguards.”
Boosting AI infrastructure and model access
In a company blog post, Microsoft stated that the GPUs will be used to provide access to advanced AI models from OpenAI, Anthropic, open-source developers, and Microsoft itself. “More important is their positive impact across the UAE,” the company emphasized.
Nvidia shares rose 2.17% following the news, while Microsoft dipped slightly by 0.17%. Analysts say the move cements the UAE’s strategy to become a global AI hub. “Access to the world’s leading AI chips provides the hardware that will give developers the leading edge needed in an incredibly competitive global landscape,” said Azad Zangana from Oxford Economics.
Deepening U.S.–UAE tech cooperation
Microsoft President Brad Smith highlighted the importance of the U.S.–UAE relationship during the ADIPEC conference in Abu Dhabi. “We’re very grateful to Secretary of Commerce Howard Lutnick and the bipartisan support that made these export licenses possible,” Smith said.
Microsoft is also increasing its total investment in the UAE to $15.2 billion by 2030. This includes a $1.5 billion equity investment in AI firm G42 and over $5.5 billion in capital expenditures for expanding its AI and cloud infrastructure in the region.
A foundation of technology, talent, and trust
Smith emphasized that Microsoft’s strategy is rooted in “technology, talent, and trust,” which he sees as the foundation for the UAE’s broader digital transformation. “We’re really investing in trust, not just infrastructure,” he said, pointing to AI’s role in shaping the region’s future economy.
