On October 9, individuals with knowledge of the situation revealed that the United States has given the green light for the export of Nvidia chips, valued at billions of dollars, to the United Arab Emirates (UAE). This move marks the first step in putting into action a contentious agreement that has the potential to act as a guiding framework for the U.S.'s artificial intelligence (AI) strategy.

According to these sources, the Bureau of Industry and Security under the U.S. Department of Commerce recently granted export licenses to Nvidia. These licenses were issued in line with the stipulations of a bilateral AI agreement that was inked in May. A U.S. official noted that the approval was granted after the UAE came up with concrete plans for reciprocal investments in the United States. However, the official chose not to reveal the precise quantities of the chip shipments or the specific amounts of the UAE's investments.

These licenses mark the first time since Trump assumed office that the sale of Nvidia AI chips to the Gulf nation has been approved. This development indicates significant headway on the agreement that was announced nearly five months prior. The crux of the agreement centers around the construction of a colossal 5-gigawatt data center in the UAE's capital city, with OpenAI set to be the main tenant.