The Trump administration has loosened US export controls on the United Arab Emirates, clearing a path for sales of advanced AI chips, certain military equipment, and commercial satellites to the Gulf nation.
According to Bloomberg, the changes open the door for AI chip sales that were previously restricted. Reuters, reporting via journalist Karen Freifeld, said the Commerce Department's move lets the UAE firm G42 and US companies such as Apple, Meta, and xAI export AI chips to the UAE without a license. ThePrint noted the shift specifically eases exports of Nvidia AI chips.
The action took effect Friday, July 10. Per an MSN report, the US also upgraded the UAE to "Major Defence Partner" status, paving the way for exports of military equipment, certain commercial satellites, and spacecraft. CNBC-TV18 reported that the UAE government and approved companies will now be able to access advanced computing items license-free.
The policy drew immediate criticism. According to CNBC, Senator Elizabeth Warren blasted what she called a "corrupt" provision, pointing to a measure under which the Commerce Department will favorably review exports involving MGX. CNBC reported that MGX used a stablecoin linked to President Trump's family for a $2 billion investment in Binance.
The brief marks a significant loosening of rules that had tightly governed which countries could buy the high-end chips that power artificial intelligence systems and data centers. It also reflects the deepening technology and defense ties between Washington and Abu Dhabi.
Why it matters: Access to top-tier AI chips has become one of the most contested levers in global tech policy, and easing curbs for the UAE signals how the US is using chip exports to reward strategic partners — even as critics question the ethics of who benefits.