On October 3, 2025, the Wall Street Journal reported that Nvidia's multi-billion-dollar deal to ship AI chips to the United Arab Emirates (UAE) has hit a snag. Nearly five months after the agreement was inked, its progress has ground to a halt.

Originally slated to unfold from 2025 to 2027, the deal stipulated that the UAE would make investments in the United States. In return, the UAE would receive up to several hundred thousand Nvidia chips on an annual basis. This kind of exchange is in line with international business - trade practices where mutual benefits drive cooperation. In the global tech and trade landscape, such deals are common as countries seek to leverage each other's strengths. The UAE aims to boost its tech capabilities, while the U.S. hopes to attract foreign investment.

However, despite months of intense negotiations, the promised investments from the UAE side have not come to fruition. In the business world, negotiations are often complex and time - consuming, involving multiple stakeholders and various legal and financial considerations. It's not uncommon for deals to face delays during this process.

Now, the fate of this agreement rests in the hands of U.S. Commerce Secretary Lutnik. The approval of the Commerce Department is of paramount importance for the deal to move forward. In the U.S. regulatory framework, the Commerce Department plays a key role in overseeing international trade and investment deals, ensuring they comply with national interests and regulations. Without its green light, the deal is likely to remain in limbo.