U.S. Officials Postpone AI Chip Deal Between UAE and Nvidia Amid National Security Concerns
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On July 17, the Wall Street Journal reported that officials in the Trump administration have postponed a significant deal between the United Arab Emirates (UAE) and Nvidia for the purchase of advanced AI chips, citing national security concerns. The multibillion-dollar transaction, initially set to be expedited during Trump's visit to the Middle East in May, has yet to see both parties reach an agreement on terms. The core of the disagreement revolves around whether the UAE is prepared to adjust the deal's terms to address the security apprehensions of U.S. officials. Among the measures under discussion is limiting Abu Dhabi's AI firm G42 from directly acquiring approximately 20% of the chips stipulated in the agreement. Despite negotiators initially expressing optimism about the deal's approval, the sluggish progress has now sparked discord among administrative officials and disappointed technology executives aiming to expand their AI business overseas. During a recent meeting with Trump, Nvidia CEO Jen-Hsun Huang underscored the importance of the agreement.