US eases UAE access to coveted AI chips after Gulf nation provided help in Iran war

The United Arab Emirates is getting broader access to prized US artificial intelligence chips after becoming a key military partner during the conflict with Iran – the latest instance of AI chips becoming a powerful bargaining chip in international diplomacy. The UAE has carried out dozens of airstrikes, intercepted hundreds of missiles and helped keep oil flowing through the Strait of Hormuz.Under a Trump administration rule announced Friday, the UAE is being placed in the same export category as European nations, South Korea and India for purchases of technology, military equipment and energy infrastructure with potential military uses.The UAE was previously in the same category as countries including China and Yemen.President Trump praised UAE President Sheikh Mohamed bin Zayed Al Nahyan during a recent Group of Seven summit in France.“His Highness is a warrior,” he said.
“They’ve been with the United States for a long time, but I would say much more so since I came on board.”The Gulf nation has tried for years to secure cutting-edge American technology as it works to diversify its economy.The decision is likely to face political scrutiny because it benefits a country whose national security adviser became a major business partner of the Trump family last year.The White House has denied any conflicts of interest.“It smells like it could be an illegal pay-to-play scheme,” Rep.
Sydney Kamlager-Dove (D-Calif.) said Tuesday during a House committee hearing.Commerce Department official Jeffrey Kessler, whose office oversees export controls, said he never discussed AI chip exports to the UAE with Trump family members or executives at their World Liberty Financial, the crypto company founded by Trump, special envoy Steve Witkoff and their sons.“It is one of the most significant achievements of the administration,” Kessler said of the UAE announcement.The move will enable G42, the UAE’s flagship AI company, to buy Nvidia chips without restriction...