UAE's Bold Move to Become AI Hub with Nvidia Chip Deal
The United States and the UAE have reached a preliminary agreement for the latter to import 500,000 advanced AI chips annually from Nvidia, facilitating the development of data centers and AI models. The deal, starting in 2025, marks UAE's bid to become a key player in global AI competition.
The United States and the United Arab Emirates have struck a preliminary deal for the UAE to import 500,000 of Nvidia's advanced AI chips annually, starting in 2025. This move aims to bolster the Emirates' efforts in constructing data centers crucial for developing cutting-edge artificial intelligence models.
While the agreement is still under negotiation and faces potential opposition within the U.S. government, it represents a significant step toward making the Gulf region a third pillar in the global AI landscape, alongside the United States and China. The deal stipulates allocation of 20% of these chips to UAE's tech firm G42, with the remainder potentially supporting U.S. tech giants in building data centers in the region.
Negotiations continue amid growing geopolitical concerns. The Biden administration's restrictions on AI chip exports are partly aimed at preventing valuable technology from bolstering China's military. Despite this, plans for similar UAE and U.S. data centers remain a central aspect of the evolving agreement as both nations navigate complex technological and diplomatic landscapes.
(With inputs from agencies.)
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