Microsoft is set to export Nvidia’s cutting-edge AI processors to the United Arab Emirates after securing approval from the U.S. Commerce Department. The company announced that licenses granted in September, under strict regulatory safeguards, allow it to deliver over 60,000 Nvidia chips, including the top-of-the-line GB300 Grace Blackwell models, to power data centers in the Middle East.
Interestingly, these are the very AI chips that President Donald Trump had previously stated he would block from being sold to China. When asked about allowing Nvidia to export its most advanced Blackwell processors to the country, Trump said he would not permit the sale.
Building on this expansion, Microsoft is committing $7.9 billion over the next four years to strengthen its presence in the UAE, covering data centers, cloud infrastructure, and local workforce growth. The investment, announced by Microsoft President Brad Smith in Abu Dhabi, also includes plans to nearly triple the number of advanced Nvidia chips the company will operate in the country.
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Updated licenses issued in September now allow Microsoft to “ship the equivalent of 60,400 additional A100 chips. involving Nvidia’s even more advanced GB300 GPUs.” The company said it secured U.S. government approval to export AI chips to the UAE after meeting stringent security requirements.
“They’re not just acts of faith,” Microsoft President Brad Smith said. “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.”
“We’re using these GPUs to provide access to advanced AI models from OpenAI, Anthropic, open-source providers and Microsoft itself,” Smith added.
Microsoft is deepening its involvement in the United Arab Emirates’ efforts to diversify its economy beyond oil, positioning itself as a central partner in the nation’s push to become a regional leader in artificial intelligence and digital innovation.
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In early 2024, Microsoft invested $1.5 billion in G42, an Abu Dhabi-based AI firm focused on cybersecurity, cloud computing, and space technologies. The deal also brought Microsoft President Brad Smith onto G42’s board, highlighting the strategic importance of the partnership.
As per G42, that it has already deployed 21,500 chips, equivalent to Nvidia’s A100 GPUs, in the UAE with approval from the Biden administration. The company also plans to deliver an additional 60,400 chips soon, including units from Nvidia’s newest GB300 series. “Those will come in months, not years,” Smith said.
The collaboration also complements OpenAI’s growing international presence. Earlier this year, OpenAI, supported by Microsoft, chose the UAE as the first location outside the United States for its Stargate data center project, a critical step in expanding advanced AI infrastructure.
Microsoft’s growing investments and strategic partnerships in the UAE underscore the company’s long-term commitment to the region, supporting its ambitions to become a hub for artificial intelligence, cloud computing, and digital innovation. By combining advanced technology, significant capital, and collaborative initiatives, Microsoft is helping shape the UAE’s future as a leader in cutting-edge tech while reinforcing its own role as a global AI powerhouse.