In a high-profile move during his Middle East tour, President Donald Trump confirmed a sweeping semiconductor deal that will shape the future of artificial intelligence infrastructure outside the United States.

The agreement authorized by Trump enables the United Arab Emirates to purchase high-end AI chips from U.S. companies to power what will become the world’s largest artificial intelligence campus outside the U.S., while including safeguards to protect sensitive technology and national security interests, as Breitbart reports.

The deal was signed Thursday while Trump visited Abu Dhabi, marking the final stop in a week-long trip aimed at deepening U.S. ties with the region through technology and infrastructure cooperation. As part of the arrangement, the UAE will gain access to advanced AI semiconductors for a major development project underway in Abu Dhabi.

The new AI campus, currently under construction, is expected to span ten square miles and will be powered by a 5-gigawatt energy capacity, robust enough to handle operations involving 2.5 million Nvidia AI processors. This makes the planned site the largest of its kind outside American borders, both in scale and computing potential.

Semiconductors to fuel energy-hungry AI growth

The technology deal was announced jointly by Trump, Nvidia CEO Jensen Huang, and UAE President Sheikh Mohamed bin Zayed al-Nahyan, signaling a key partnership between government leadership and private sector innovation. While the exact models of chips were not disclosed, Nvidia's presence suggests its role as a primary supplier in the arrangement.

Earlier that week, Nvidia secured another agreement in the region, providing 18,000 processors to a Saudi Arabian AI company named Humain. The UAE deal now positions that country as a critical player in the global AI race, utilizing its energy wealth and regulatory cooperation with the U.S. to attract cutting-edge infrastructure investments.

Trump emphasized the broader economic impact of the agreement, highlighting UAE's plans to invest $1.4 trillion in the United States. He described the chip sale as part of a “very big contract” that would bring “billions and billions of dollars” in business as well as help the UAE become a major player in artificial intelligence.

National security, tech safeguards included

To address longstanding U.S. concerns about the misuse of high-end chips, the agreement includes key provisions to align Emirati national security standards with those of Washington. According to a White House statement, the UAE committed to enforcing strict protections to prevent technology leakage, especially to China.

This commitment comes just months after a March report by the U.S. Commerce Department highlighted the UAE as a possible route for unauthorized chip transfers to China -- chips which may have made their way into Chinese-developed AI tools such as DeepSeek. These findings raised red flags in Washington, especially among administration officials wary of Beijing’s ambitions in AI chip development.

To mitigate these risks, American companies will operate the data centers built under this agreement, according to Commerce Secretary Howard Lutnick. U.S.-based firms will also manage cloud services in the region, addressing cybersecurity and technology protection concerns over foreign infrastructure control.

U.S. officials seek to set global AI standards

White House AI adviser David Sacks, who joined Trump on the trip, argued in favor of exporting American-designed chips as the new global benchmark in artificial intelligence. In his view, partnering with allies like Saudi Arabia and the UAE is essential to counterbalance China’s technological ambitions.

Sacks acknowledged the rapid advances made by Chinese companies such as Huawei, which has begun producing its own AI semiconductors. He advocated for building alliances that lock in American technical leadership during what he described as a pivotal time in AI development.

The adviser is reportedly open to evaluating a UAE proposal to host a chip fabrication facility for Taiwan’s TSMC, the world’s leading contract chipmaker and a supplier to both Nvidia and AMD. However, members of the administration identified as “China hawks” expressed concerns about the UAE’s close economic ties with China, viewing a potential Fab located there as a strategic vulnerability.

Energy capacity makes UAE ideal for AI expansion

Abu Dhabi's AI campus is expected to benefit significantly from the UAE’s energy reserves, which are crucial for powering the immense computing demands of AI systems. The International Atomic Energy Agency recently reported that global power demands have surged, driven largely by AI data center expansion. Nearly half of the anticipated energy growth in the U.S. over the next five years is reportedly linked to similar data infrastructure.

Emirati energy firms are already using AI to enhance output and reduce emissions, providing a tested model for integrating smart technologies into industrial systems. These innovations have reportedly brought in hundreds of millions of dollars in returns, signaling both economic and strategic value in AI development.

In addition to the UAE, Saudi Arabia also pledged to purchase a substantial shipment of high-end chips from both Nvidia and AMD during Trump’s regional tour. These parallel developments point to a broader technology alignment between the U.S. and Middle Eastern nations centered on artificial intelligence infrastructure.

Global demand for American AI hardware rises

Behind the scenes, some members of Trump’s administration continue to push for stricter controls on U.S. semiconductor exports until safeguards are thoroughly verified. These officials are wary of moving too fast without clear enforcement mechanisms in place to prevent future misuse of the technology.

Nonetheless, the agreement marks a major milestone in the global race to establish AI dominance. It ensures continued access to U.S. hardware for key allies while bolstering domestic interests through reciprocal investment and operational oversight.

With Trump describing the initiative as a “very big contract,” the move signals both a diplomatic win and an assertion of economic intent as AI reshapes global industrial power structures.