Published: May 17, 2025, 05:36 PM
Former President Donald Trump has announced a landmark agreement allowing the United Arab Emirates (UAE) to purchase advanced American artificial intelligence (AI) semiconductors, a move he says will significantly boost the Gulf nation`s ambitions to become a global AI powerhouse.
Speaking during his recent Gulf tour, which included stops in Saudi Arabia, Qatar, and the UAE, Trump revealed that the two countries had finalized a deal on Thursday that would pave the way for Abu Dhabi to acquire top-tier AI chips from US companies. The agreement includes safeguards, such as requiring US companies to manage data centers involved in handling these chips, to address national security concerns.
“This will generate billions and billions of dollars in business and accelerate the UAE`s plans to become a really major player in artificial intelligence,” Trump stated, emphasizing the strategic value of the partnership.
The announcement came alongside a sweeping set of investment pledges from the UAE, with over $200 billion in new deals. Notably, Etihad Airways has committed $14.5 billion toward purchasing 28 Boeing aircraft, reinforcing strong commercial ties between the two countries.
In one of the most ambitious moves, Abu Dhabi pledged to increase its total energy investments in the US to $440 billion by 2035-up from the current $70 billion. This was detailed by Sultan Al Jaber, CEO of ADNOC and Minister of Industry and Advanced Technology, who also revealed that major US firms like ExxonMobil and Oxy are expanding their presence in the UAE.
Trump praised these commitments as evidence of a mutually beneficial relationship, adding that the UAE’s growing investments are already creating value for both economies. “We work together, and the money that’s made here comes back to us,” he said during a press conference with Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed.
The AI chip agreement is particularly significant amid global geopolitical tensions over technology exports. The UAE has been carefully balancing its relationships with the US-its longstanding ally-and China, its largest trading partner. The deal with Washington signals renewed confidence from the US in the UAE’s ability to handle advanced technologies responsibly.
Also notable was Trump’s diplomatic engagement during the trip. He met with Syria’s interim president Ahmed al-Sharaa in Riyadh and announced his intention to lift US sanctions on Syria, reportedly at the request of Saudi Crown Prince Mohammed bin Salman—a major foreign policy pivot.
Trump’s Gulf tour, though heavily centered on investment and economic collaboration, appears to have laid the groundwork for several key diplomatic shifts and tech partnerships, with long-term implications for the region and US foreign policy.
