# U.S. Commerce Department Eases AI Chip Exports to UAE

The U.S. Department of Commerce's Bureau of Industry and Security (BIS) has reclassified the United Arab Emirates to the highest trust tier (Country Group A:5), enabling license-free exports of advanced Nvidia Blackwell and AMD Instinct AI chips to UAE government and approved commercial entities such as G42. This policy change, effective as of July 10, 2026, removes previous export license requirements, accelerating the development of the $30 billion Stargate UAE AI campus, a 5-gigawatt AI compute facility in Abu Dhabi. While this facilitates expanded U.S.-UAE cooperation in AI technology and trade, it also raises national security concerns regarding potential diversion of sensitive technology to China, prompting ongoing Congressional scrutiny.

- **Key agencies involved:** U.S. Department of Commerce and BIS are central to export control policy adjustments impacting AI chip sales.
- **Major vendors and contractors:** Nvidia, AMD, and Cerebras are primary suppliers of AI chips; G42 and its subsidiaries are key UAE-based prime contractors and data center operators.
- **Procurement implications:** License-free export status expedites supply chain and project timelines for AI infrastructure in the UAE, presenting opportunities for U.S. technology providers and contractors engaged in AI hardware and data center construction.
- **Security and compliance considerations:** Procurement professionals must navigate evolving export control regulations and heightened Congressional oversight related to technology transfer risks.
- **Strategic impact:** This development signals increased U.S. engagement in international AI infrastructure projects, requiring contractors to assess geopolitical risks and compliance frameworks when pursuing opportunities in allied foreign markets.

**Jurisdictions:** federal
**Industries:** Information Technology
**Topics:** Artificial Intelligence, Regulatory Compliance
**Published:** July 16, 2026

### Government Entities
- U.S. Department of Commerce
- Bureau of Industry and Security (BIS)
- United Arab Emirates Government
- U.S. House of Representatives
- U.S. Senate

### Vendors
- Nvidia Corp. (supplier of AI chips)
- Advanced Micro Devices Inc. (supplier of AI chips)
- G42 (Prime contractor and data center operator)
- Cerebras Systems Inc. (supplier of AI chips)

### Key Quotes
> The UAE has been an exceptional ally to the US. It is a good policy to ensure that those who support our values remain within our technology ecosystem.
> — Andrew Feldman, Chief Executive Officer, Cerebras

> Why are you evading the answer? Could it be the conflict of interest in there with Witkoff and World Liberty Financial and the Trump administration, which the president personally benefited by?
> — Bill Keating, Representative (D-MA)

> We are accelerating the most ambitious AI infrastructure project outside American soil, and formally integrating the Gulf into the silicon backbone of Western AI.
> — Peng Xiao, CEO of G42

### Sources
- [US relaxes UAE export rules, clearing path for AI chip sales | Communications Today](https://www.communicationstoday.co.in/us-relaxes-uae-export-rules-clearing-path-for-ai-chip-sales) - Communications Today
- [UAE Gets License-Free Nvidia AI Chips as Congress Probes Trump Crypto Conflict](https://www.techtimes.com/articles/320682/20260716/uae-gets-license-free-nvidia-ai-chips-congress-probes-trump-crypto-conflict.htm) - Tech Times