The US government has reached an agreement with the United Arab Emirates to allow significant Nvidia GPU exports as part of a major AI partnership.

The Commerce Department has issued a license for Nvidia, although the specific number of chips has yet to be detailed. Originally, talks revolved around allowing 100,000 chips annually, which has escalated to 500,000 until 2027.

A fifth of these exports is intended for G42, a prominent AI company based in Abu Dhabi, while the rest will support US operations in the region. The UAE is set to match its investment in these chip exports with corresponding investments in the US.

A spokesperson emphasized the US’s commitment to this transformational partnership.

Recent discussions have highlighted the importance of these developments as both nations aim to remain competitive in the AI field, amidst ongoing tensions with China.

Further collaborations and permits for chip exports are anticipated, holding significant implications for the future of AI technology.