US-UAE Sign Massive $1.4 Trillion Technology Agreement

The US president and UAE have signed a historic $1.4 trillion AI deal that will boost America’s artificial intelligence sector for the next decade. The agreement will create the world’s largest AI campus outside the US. This massive facility will cover 10 square miles in Abu Dhabi and provide a 5-gigawatt capacity for AI data centers. The UAE’s US partner can now import 500,000 of Nvidia’s most advanced AI chips each year, starting immediately. The White House assures that the framework provides robust safeguards to stop technology from reaching other nations, especially China. Some US intelligence officials remain concerned about potential risks. UAE leaders see this substantial investment as a key step to broaden their economy beyond oil and establish themselves as a major force in the global AI world.

Trump signs $1.4T AI deal with UAE in Abu Dhabi

President Donald Trump wrapped up his Middle East tour with a historic artificial intelligence partnership with the UAE in Abu Dhabi. This agreement is part of a broader 10-year, $1.4 trillion investment framework between both nations.

Trump and UAE President Sheik Mohamed bin Zayed Al Nahyan signed the agreement. “This will generate billions and billions of dollars in business and accelerate the UAE’s plans to become a really major player in artificial intelligence,” Trump said during the ceremony.

A massive 10-square-mile AI campus stands at the heart of this agreement in Abu Dhabi. The facility will have 5 gigawatts of power capacity for AI data centers. Starting with a 1-gigawatt AI data center, it will grow to become the largest deployment outside the United States. Abu Dhabi state-backed firm G42 will build this campus alongside several American companies.

The deal ensures the UAE will receive 500,000 of Nvidia’s most advanced AI chips yearly, beginning this year. G42 will keep 20% of these chips for its GPU cloud and datacenter builds, while U.S. companies will get the rest.

“By extending the world’s leading American tech stack to an important strategic partner in the region, this agreement is a major milestone in achieving President Trump’s vision for US AI dominance,” US Commerce Secretary Howard Lutnick said.

The agreement states that “American companies will operate the data centers and offer American-managed cloud services throughout the region”. The datacenter campus will employ solar, gas, and nuclear power to reduce its carbon footprint.

Sheik Mohamed bin Zayed Al Nahyan called the partnership a way of “strengthening the UAE’s position as a hub for innovative research and sustainable development”. The UAE also promised to “invest in, build, or finance US data centers that are at least as large and as powerful as those in the UAE”.

What does the UAE gain from the AI partnership?

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“By diversifying sources of this essential input for semiconductors and defense technologies, the partnership strengthens America’s supply security, supports high-tech manufacturing, and creates jobs across the U.S. critical minerals and defense industrial base.” — White House Statement, Official statement from the Executive Office of the President of the United States

The $1.4 trillion agreement with the United States supports UAE’s vision to become a global AI powerhouse. The Emirates stands among the world’s most advanced AI sectors as an early AI adopter. This position now gives UAE unprecedented access to critical technology and infrastructure.

Abu Dhabi hosts a massive 10-square-mile AI campus with 5 gigawatts of capacity for AI data centers. This facility has become the largest AI infrastructure project outside the United States. The Emirates can serve nearly half the global population living within 3,200 km (2,000 miles) with its exceptional computing resources.

The partnership allows UAE to import 500,000 of Nvidia’s most advanced AI chips yearly. This represents a tripling or quadrupling of compute power compared to previous arrangements. Abu Dhabi’s state-backed AI powerhouse G42 will keep 20% of these chips for its GPU cloud and datacenter builds.

UAE now holds a critical position as a “third power center in global AI competition” after the United States and China. This position matches the country’s economic diversification strategy beyond oil. Their AED 13 billion ($3.54 billion) investment through 2025-2027 shows their commitment to encourage innovation and technology adoption.

UAE’s notable AI achievements include:

• First country to appoint a federal Minister of Artificial Intelligence in 2017
• Mohamed bin Zayed University of Artificial Intelligence opened its doors in 2019
• UAE Strategy for Artificial Intelligence launched in 2017
• Falcon, a top-rated open-source large language model, created in 2023

Sheik Tahnoon bin Zayed Al Nahyan, Chairman of the Artificial Intelligence and Advanced Technology Council, highlighted that this partnership “strengthens UAE’s position as a hub for state-of-the-art research and eco-friendly development, delivering transformative benefits for humanity”. The agreement advances UAE’s ambitious roadmap for AI integration in education, healthcare, transportation, and energy sectors.

Why are US lawmakers and intelligence officials concerned?

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The landmark AI partnership has faced strong pushback from US officials and lawmakers who have raised serious concerns about the $1.4T UAE deal. Their biggest problem focuses on advanced American technology potentially making its way to China, a country with strong regional connections.

The Biden administration strictly controlled AI chip exports to Middle Eastern countries. They wanted to stop these semiconductors from reaching Beijing and boosting China’s military capabilities. The new agreement bans Chinese firms from accessing the technology, but some senior administration officials feel many details still need work.

“The Trump administration’s view is that the region aspires to be an AI powerhouse and that if the US does not find a path for the countries to access American technology, Chinese hardware will become dominant there,” said one administration official involved in the talks.

Major Chinese companies like Huawei and Alibaba Cloud still operate in the UAE, which keeps worries alive. Intelligence reports have tracked AI chip smuggling operations to China through several countries, with the UAE among them.

US congressional Democrats have introduced Senate resolutions to block three UAE arms sales. These lawmakers pointed to serious claims about Abu Dhabi supplying weapons to Rapid Support Forces paramilitaries in Sudan’s civil war – something the UAE has denied repeatedly.

Representative Gregory Meeks said, “The Trump administration’s end-run around Congress is irresponsible and will further embolden the UAE to violate the UN’s Darfur arms embargo”.

Democratic lawmakers have also accused the president of taking favors. They referenced an April announcement where Emirati investment firm MGX planned to use a Trump family-backed World Liberty Financial stablecoin for a AED 7.34bn investment in Binance cryptocurrency exchange.

The agreement has created clear divisions within the administration, as China hawks demand stronger security measures before moving forward with implementation.

The US and UAE have signed a historic $1.4 trillion AI partnership that stands as a turning point in global tech cooperation. The UAE has now established itself as the world’s third-biggest player in the AI world, right behind the US and China. The Emirates shows its steadfast dedication to broadening beyond oil dependency by building a massive 10-square-mile AI campus with unmatched computing power.

US lawmakers and intelligence officials have raised serious questions about this deal. The biggest problem remains the risk of tech falling into Chinese hands, even with built-in safeguards. The situation gets more complex as congressional Democrats push for blocking arms sales to Abu Dhabi because of UAE’s alleged role in Sudan.

This partnership’s economic effects reach way beyond the two countries involved. The UAE’s prime location makes it a perfect AI hub that can serve almost half the world’s population living within 3,200 km of its borders. US companies will also gain by running data centers and offering cloud services across the region.

The deal brings both amazing chances and serious risks. Without doubt, the partnership’s success hinges on strict security measures and clear oversight. This groundbreaking collaboration will reshape the digital world over the next decade and could alter how AI power is distributed globally for years ahead.