The U.S. government is reportedly exploring a significant technology export deal that would allow the United Arab Emirates to purchase more than one million advanced AI chips from Nvidia, according to Bloomberg News. This move would represent a sharp deviation from current AI chip export controls implemented during the Biden administration, which were designed to restrict the international flow of sensitive semiconductor technology.

Sources familiar with the discussions told Bloomberg that the proposal, which remains under negotiation and subject to change, would permit the UAE to receive 500,000 of Nvidia’s most sophisticated chips annually through 2027. This annual volume would far exceed what is currently permitted under existing U.S. regulations, signaling a potential policy shift in how Washington manages its strategic tech exports.

A portion of the chips—approximately 20%—would reportedly be allocated to G42, an artificial intelligence company headquartered in Abu Dhabi. The remainder would be used by U.S. firms building large-scale data centers within the UAE. These facilities are likely part of broader efforts to expand digital infrastructure in the region and support a growing demand for AI-driven services.

This possible deal comes at a time when the U.S. is grappling with how to balance economic partnerships in the Gulf region with national security concerns over advanced technologies. The Biden administration has previously tightened AI chip exports out of concern that such components could be redirected or shared with geopolitical rivals, particularly China.

Despite the scale and potential impact of the arrangement, neither the U.S. Department of Commerce nor Nvidia provided immediate responses when contacted by Reuters. Their silence has left the industry and international observers speculating on how this potential deal could reshape both commercial ties and regulatory precedent.

If approved, this agreement could mark a turning point in U.S. tech policy, highlighting the growing strategic value of artificial intelligence hardware and the complexity of maintaining export controls while nurturing foreign investment and partnerships in AI development. The outcome may also influence how other allied nations approach AI infrastructure collaboration with American tech companies.