United States Eases UAE Export Controls for Advanced AI Chips

The United States has eased export controls on the United Arab Emirates, allowing the Emirati government and approved companies to receive advanced computing items including AI chips and servers without individual licenses, the Commerce Department announced. The change moves the UAE into a category eligible for Strategic Trade Authorization, removing transaction-by-transaction licensing requirements. U.S. Commerce stressed that anti-diversion safeguards remain in force and access covers only the Emirati government and approved companies. The department tied the change to the UAE's status as a major defense partner and its support for American national security interests during Operation Epic Fury. The new export eases also remove limits on U.S. companies such as Microsoft and OpenAI that have planned data centers in the UAE. According to a report by the Wall Street Journal, experts say the change to chip access alone could be worth billions of dollars. In exchange, the Bureau of Industry and Security stated that the UAE has committed to make matching investments in U.S. AI digital infrastructure buildout. UAE officials have indicated that G42, controlled by national security adviser Sheikh Tahnoon bin Zayed Al Nahyan, plans to become a U.S. company primarily owned by U.S. investors, people familiar with the discussions report. Critics argue that greater UAE chip access could harm the U.S. in the AI race against China, while others question the security of advanced computing power built outside American soil. The package also covers selected commercial satellites, spacecraft, military items, and dual-use equipment for energy, desalination, and civil nuclear power.