Based on insights from well - informed sources, the Bureau of Industry and Security under the US Department of Commerce has granted Nvidia an export license. This license permits Nvidia to export AI chips valued at billions of dollars to the United Arab Emirates (UAE), thus putting into action an agreement that both parties struck in May. Prior to this, the UAE had already laid out detailed plans for equivalent investments within the US. It was these plans that ultimately convinced the US government to give the green light for the chip export. The central aspect of the agreement revolves around constructing a massive 5 - gigawatt data center in the UAE's capital city. OpenAI is slated to be the primary tenant of this data center. Nevertheless, the agreement has stirred up a wave of controversy in Washington. Some government officials have raised doubts, questioning the wisdom and necessity of building such a colossal data center outside the United States.