According to a recent article by the Wall Street Journal, the Nvidia AI chip deal with UAE has been on a five month delivery hold, with the CEO of Nvidia Jensen Huang frustrated.
As per the article, the fate of the deal is in the hands of Commerce Secretary Howard Lutnick. The commerce department’s approval is crucial for allowing the UAE to invest in the U.S., while Lutnick also has to sign off on chip sales to the UAE Gulf country.
The commerce secretary has pressed the UAE to finalize their U.S. investments before any chip shipments are authorized, which in turn has delayed the deal, the WSJ report said.
The article notes that concerns over national security risks, given the UAE’s proximity to China, have also hampered the deal. Nvidia executives have privately complained about Lutnick’s tactics, the WSJ report said, as have some members of the Donald Trump administration.
In September Abu Dhabi’s Technology Innovation Institute and Nvidia launched a joint research lab in the United Arab Emirates that will focus on developing next-generation AI models and robotics platforms. The joint research hub is the first Nvidia AI Technology Center in the Middle East, TII said in a statement, combining its multidisciplinary research with the U.S. company’s AI models and computing power.
In May of 2025, during an official visit to the United States by H.H Tahnoon Bin Zayed Al Nahyan, Deputy Ruler of Abu Dhabi and National Security advisor, Nvidia and xAI joined the “AI Infrastructure Partnership”, an initiative aimed at advancing and accelerating the development of artificial intelligence and emerging technologies.
ADQ and Energy Capital Partners (ECP), the largest private owner of power generation and renewables in the USA, announced a 50:50 joint venture based in the United States. The partnership aims to invest US$25 billion in new energy projects.
The investments and deals made by the UAE government is part of the UAE National AI Strategy 2031 whose mandate is to transform the nation into a global hub for responsible AI while advancing Centennial 2071. The Emirates Council for Artificial Intelligence and Digital Transactions coordinates implementation, ensuring federal and emirate-level bodies move in lockstep.
UAE is seeking to lift AI’s share of national GDP from today’s ~9% to 45% by 2031, adding an estimated AED 335 billion in value. The UAE is making extensive AI investments, including a $1.4 trillion commitment over 10 years to build AI data centers in the U.S. UAE MGX backed by G42 and Mubadala, plans to invest $100 billion in AI infrastructure, chips, and core AI technologies.
Omar Sultan Al Olama, Minister of State for Artificial Intelligence, Digital Economy, and Remote Work Applications, who recently participated in the activities of the “Digital Bridge 2025” Forum, held in the Kazakhstan’s capital, Astana, noted that artificial intelligence represents a essential pillar for driving transformative shifts in governance models and enhancing the efficiency of both government and private sector institutions, with positive impacts on societies’ well-being. He also stated that the UAE stands as a global model in AI leadership and has adopted a forward-looking approach by implementing a comprehensive national AI strategy, enabling the country to position AI as a key driver of development and establish itself as a global hub for future technologies.
