(MENAFN- The Arabian Post)

The U. S. Commerce Department has authorised the export of advanced artificial-intelligence semiconductors to two Middle Eastern firms, granting licences for each to procure up to 35,000 units of Nvidia's Blackwell chips. The approvals apply to G42 of the United Arab Emirates and Humain of Saudi Arabia, representing a significant shift in America's technology-export policy.

The licences impose stringent conditions: both companies must adhere to rigorous security and reporting protocols, as stipulated by the Bureau of Industry and Security. Each batch of 35,000 Blackwell chips is estimated to be worth around US$1 billion, though actual values may vary. The move aligns with broader data-centre and AI infrastructure projects in both Gulf states.

G42 is engaged in establishing one of the world's largest data-hub platforms, known as“Stargate UAE”, due to become operational in 2026; the project involves major U. S. technology firms including Nvidia, OpenAI, Cisco Systems and Oracle Corporation. Humain is developing large-scale compute infrastructure in Saudi Arabia and has announced a plan to purchase up to 600,000 Nvidia AI chips and collaborate with xAI, the AI startup backed by Elon Musk, including a 500-megawatt data-centre facility.

UAE Ambassador to the U. S., Yousef Al Otaiba, described the authorisation as a milestone in the enduring partnership between his country and the United States, highlighting the shared commitment to advanced AI and national-security frameworks. The timing of the announcement coincided with the return to Washington of Saudi Crown Prince Mohammed bin Salman for his first visit to the U. S. since 2018, underscoring the strategic dimension of the decision.

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Industry analysts interpret the decision as part of a broader recalibration of U. S. export-control policy. Whereas previous administrations imposed tight limits on exports of top-tier AI hardware to foreign entities, the current move signals that access may be broadened when aligned with strategic partners and paired with compliance obligations. Some observers warn, however, that expanding access raises risks of technology diversion or a weakening of U. S. leverage over how the hardware is used.

From the Gulf perspective, the authorisations unlock access to frontier computing power at a pivotal moment in both nations' technology-driven diversification efforts. In the UAE, the G42-led initiative is positioned as part of the country's ambition to become a global AI hub, with one of its systems already ranked among the top 500 supercomputers worldwide. In Saudi Arabia, Humain's data-centre ambitions aim to support the kingdom's push to build a sovereign AI ecosystem, tapping into its abundant land, energy resources and strategic location.

The deal connects to a broader trend of U. S.–Gulf tech collaboration: earlier this year, a preliminary U. S. agreement allowed the UAE to import up to 500,000 high-end Nvidia GPUs annually beginning in 2025 under a reciprocal investment framework, whereby Emirati commitments in U. S. energy and technology projects would match chip imports. Although G42 was initially excluded from the first batch of that arrangement, it is expected to receive access in subsequent rounds under revised terms.

Complying with the licence terms will be closely monitored. The U. S. agency's statement emphasised that both G42 and Humain must meet ongoing reporting and security obligations. Failure to satisfy those conditions could jeopardise future deliveries or trigger policy reversal.

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