Trump strikes AI deal with UAE to build largest AI campus outside the US

US President Donald Trump has signed an agreement with the United Arab Emirates to build the largest artificial intelligence campus outside the United States. The deal, announced during Trump’s visit to the Gulf, marks a significant shift in US tech policy and a strategic win for the UAE.

The new campus will span 10 square miles in Abu Dhabi and feature 5 gigawatts of AI data center capacity. It will be developed by UAE state-backed firm G42, but operated by American companies, a condition aimed at safeguarding US technology.

Crucially, the deal grants the UAE access to as many as 500,000 of Nvidia’s top AI chips annually beginning in 2025. These chips had been restricted under the Biden administration due to concerns about technology transfers to China.

“The Biden export controls were never meant to target allies,” said Trump’s AI czar, David Sacks, during a stop in Riyadh. “This agreement shows we can build AI infrastructure with trusted partners while protecting national security.”

Nvidia CEO Jensen Huang and OpenAI’s Sam Altman were both present in Abu Dhabi, underscoring corporate enthusiasm for expanding AI infrastructure abroad. Qualcomm will establish an engineering center, while Amazon Web Services will support cybersecurity and cloud adoption efforts.

UAE's quest for AI innovation

The UAE has aggressively pursued AI leadership, investing billions into the sector. However, its ties with China had previously limited access to US technology. This deal includes commitments from the UAE to align more closely with US national security standards, including the removal of Chinese hardware and a pledge not to divert US-origin tech.

Still, some experts caution that such access could pose risks. U.S. intelligence has tracked past chip smuggling efforts through Gulf countries, including the UAE. Critics worry the deal could unintentionally aid China’s tech ambitions.

“This is a calculated risk,” said Mohammed Soliman of the Middle East Institute. “But if managed well, it deepens US-UAE ties while keeping China at arm’s length.” The agreement also commits the UAE to investing in equivalent US-based data centers, reinforcing reciprocity.

Whether this strategy strengthens America’s global tech leadership or inadvertently weakens it remains to be seen.