Microsoft is making waves in the global artificial intelligence (AI) landscape, announcing on November 3, 2025, that it will ship more than 60,000 of Nvidia’s most advanced AI chips to the United Arab Emirates (UAE) under a deal approved by the U.S. Commerce Department. This high-profile move, which includes the delivery of Nvidia’s cutting-edge GB300 Grace Blackwell GPUs, is part of Microsoft’s ambitious $15.2 billion investment in UAE technology infrastructure and marks a milestone in U.S.-UAE technology collaboration.
These shipments come under licenses granted in September 2025, which Microsoft says were approved only after meeting “stringent” safeguards. The company emphasized that these conditions were not mere formalities. As Microsoft President Brad Smith explained in Abu Dhabi, “We had to satisfy very strict conditions about the cybersecurity, the physical security, the other security protection of these chips to ensure that they stay under our control. They’re not just acts of faith.”
The chips are destined for data centers and will be used to provide access to advanced AI models from OpenAI, Anthropic, open-source developers, and Microsoft itself. According to Microsoft, these GPUs are essential for training and deploying large-scale AI models, offering the UAE a significant leap forward in its quest to become a regional hub for artificial intelligence and digital innovation. The UAE already had more than 21,000 Nvidia GPUs through licenses approved under the Biden administration, but the new shipment will nearly triple the country’s stock of advanced AI hardware.
This deal is not just about hardware. It’s part of a broader, strategic partnership between Microsoft and the UAE. In early 2024, Microsoft invested $1.5 billion in G42, an Abu Dhabi-based AI company specializing in cybersecurity, cloud computing, and space technologies. This investment made Microsoft a major stakeholder in G42, with Brad Smith joining the company’s board. G42 has already deployed over 21,500 Nvidia-equivalent A100 chips in the UAE, and it plans to add another 60,400 chips, including the latest GB300 series, in the coming months. “Those will come in months, not years,” Smith told reporters, underscoring the urgency and scale of the project.
Microsoft’s financial commitment to the UAE is staggering. Since 2023, the company has spent $7.3 billion in the country, and it plans to invest an additional $7.9 billion between 2026 and 2029. These funds are earmarked for AI and cloud infrastructure, workforce training, and governance initiatives. Smith stated in a blog post, “This is not money raised in the UAE. It’s money we’re spending in the UAE. And as we do everywhere in the world, we’re focused not just on growing our business but also on contributing to the local economy. This involves bringing together three critical factors — technology, talent, and trust.” Microsoft currently employs nearly 1,000 full-time staff in the UAE.
But why is the U.S. government allowing such a massive export of advanced AI technology to the UAE? The answer lies in strategic interests and global competition. The UAE’s access to these chips is tied to its promise to invest $1.4 trillion in U.S. energy and AI-related projects — a staggering figure, especially considering the country’s annual GDP is about $540 billion. This reciprocal arrangement is seen as a way for the U.S. to maintain influence in the Middle East, an area where Chinese technology firms have been making inroads.
Indeed, the approval of the export licenses follows a May 2025 agreement between U.S. President Donald Trump and UAE President Sheikh Mohamed bin Zayed to jointly support the development of an AI data center campus in Abu Dhabi. That project, which had previously stalled due to export restrictions, is now moving ahead thanks to the new licensing framework. U.S. officials and Microsoft executives see this as a way to strengthen collaboration in advanced technologies while reducing reliance on Chinese vendors and platforms.
Yet, the deal has not been without controversy or confusion. In a November 3, 2025 interview with CBS News, President Trump stated that Nvidia’s most advanced chips would not be exported outside the United States, especially not to China. “We will let them deal with Nvidia but not in terms of the most advanced,” Trump said. “The most advanced, we will not let anybody have them other than the United States.” While his comments specifically referenced China, they created some public uncertainty about U.S. technology export policy. However, the Commerce Department’s approval of the UAE deal — under stringent safeguards — clarified that exceptions can be made for trusted partners, provided strict security protocols are in place.
Microsoft’s approach in the UAE is guided by a new Responsible AI Future Foundation and a first-of-its-kind intergovernmental assurance framework, designed to align its operations with U.S. cybersecurity and data protection standards. According to Smith, the company’s efforts are “anchored by technology, talent, and trust,” and the goal is to ensure the chips and the AI models they power remain secure and under Microsoft’s control.
The broader implications of this deal reach far beyond the UAE’s borders. Microsoft President Brad Smith has repeatedly emphasized that distributing AI tools globally — including to the Middle East, southern Europe, Africa, and East Asia — will determine whether artificial intelligence becomes a widely beneficial technology or one that increases global inequalities. “By boosting AI computing power in the UAE, Microsoft hopes to support broader international access to AI capabilities,” Smith said. He cautioned that without deliberate investments in emerging regions, access to transformative technologies could remain limited to a few countries and create wider global inequality.
The UAE, for its part, is determined to leverage this influx of technology to diversify its economy beyond oil and establish itself as a leader in digital innovation. The partnership with Microsoft, along with the deployment of OpenAI’s Stargate data center project — the first of its kind outside the United States — signals the country’s intent to be at the forefront of the AI revolution.
For Nvidia, the news has already had a positive impact. The company’s stock rose by 3% following the announcement, reflecting investor confidence in the global demand for its AI chips. Microsoft’s shares also edged higher, as investors recognized the company’s expanding role in the rapidly growing international AI infrastructure market.
As the world’s technology giants and governments jostle for position in the AI race, Microsoft’s bold move in the UAE stands out as a landmark moment. The shipment of 60,000 advanced Nvidia chips, underpinned by billions in investment and a web of strategic agreements, is not just a business deal — it’s a signal that the geopolitics of AI are reshaping alliances and ambitions across the globe.
With stringent safeguards in place and a clear focus on responsible development, Microsoft’s partnership with the UAE is poised to accelerate the region’s digital transformation and set a precedent for future technology collaborations worldwide.
