A multibillion-dollar deal for Nvidia Corporation (NASDAQ:NVDA) to supply advanced AI chips to the UAE has been stalled for months, reportedly frustrating CEO Jensen Huang as U.S. Commerce Secretary Howard Lutnick pushes Abu Dhabi to finalize investments before shipments proceed.
Nvidia's market cap has reached $4.59 trillion, with shares climbing 58.97% over the past year and advancing 36.61% in 2025 to date. On Thursday, the stock rose 0.91%, according to Benzinga Pro.
Deal Faces Unexpected Delays
The agreement, announced in May, was meant to showcase the White House's push to expand U.S. tech influence abroad while countering China's AI ambitions.
However, the Emirati investments have yet to materialize, baffling some administration officials, reported the Wall Street Journal, citing people familiar with the matter.
The stalled deal is seen as a setback for Huang and White House AI Czar David Sacks, who view such agreements as crucial to advancing U.S. tech strategy and maintaining an edge over China in the AI race.
"Sacks and Secretary Lutnick are integral to the President's AI agenda and are working diligently to get deals done on behalf of the American people," White House spokesman Kush Desai told the publication.
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Security Concerns Over UAE-China Ties
The Commerce Department's approval is required before Nvidia can deliver the chips.
Lutnick has conditioned approval on the UAE finalizing its U.S. investments, while also raising concerns about the Gulf nation's close relationship with China, the report added.
Nvidia Execs And CEO Jensen Huang's Frustration
Huang and Nvidia executives have privately expressed frustration over the delays, the sources said.
One senior Nvidia executive denied that the company is alarmed, the report added.
An Nvidia spokesperson told Benzinga in an emailed statement that the company supports the Trump administration's AI action plan, including the Middle East agreements. "Look forward to providing any assistance they need."
The Commerce Department did not immediately respond to Benzinga's request for comments.
Trump's Broader AI Strategy
The UAE deal was touted by President Donald Trump during his May visit to Abu Dhabi, part of what the White House said was more than $200 billion in bilateral agreements.
The UAE pledged to fund U.S. data centers for AI training while purchasing billions in Nvidia chips.
For now, the deal remains stuck, with one official saying at least $1 billion in investments and chips could still be exchanged by year's end.
UAE Aims To Become Global AI Hub With OpenAI Collaboration
Last week, UAE President Sheikh Mohammed bin Zayed met OpenAI CEO Sam Altman in Abu Dhabi to discuss AI collaboration. The talks focused on building an integrated AI ecosystem to support the UAE's development goals.
Separately, in July, it was reported that Taiwan Semiconductor Manufacturing Co. (NYSE:TSM) is reportedly considering building a six-factory gigafab in the UAE, pending U.S. regulatory approval due to the Gulf nation's ties with China and Iran.
Benzinga's Edge Stock Rankings rank Nvidia's growth in the 97th percentile, showing its performance relative to other top AI companies like TSMC and AMD.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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