Nvidia’s stalled AI chip deal with UAE frustrates Huang – report

Nvidia’s stalled AI chip deal with UAE frustrates Huang – report

Nvidia’s (NASDAQ:NVDA) multibillion-dollar deal to supply advanced AI chips to the United Arab Emirates has been stalled for nearly five months, frustrating CEO Jensen Huang and some senior administration officials, the Wall Street Journal reported, citing people familiar with the matter. 

The delay likely stems from U.S. Commerce Secretary Howard Lutnick conditioning approval of the chip exports on the UAE making substantial U.S. investment, the report added.

Without Commerce Department approval, Nvidia (NASDAQ:NVDA) cannot deliver the chips; that approval is currently withheld until the UAE finalizes its investment commitments.

The Nvidia-UAE deal was announced during Trump’s visit to Abu Dhabi in May. 

The holdup is further complicated by U.S. national security concerns regarding the UAE’s close ties with China, raising fears that the advanced AI tech could be diverted to benefit Chinese AI ambitions.

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Nvidia’s stalled AI chip deal with UAE frustrates Huang – report, source