Nvidia Corp (NASDAQ:NVDA) shares are trading higher after the U.S. reportedly approved Microsoft Corp (NASDAQ:MSFT) to ship the U.S. chip designer’s artificial intelligence chips for use in the United Arab Emirates (UAE).
The company announced new details of its long-term investment strategy in the UAE as Abu Dhabi and Dubai host primary energy and technology conferences this week.
Microsoft reaffirmed its commitment to advancing artificial intelligence and cloud innovation through a strategic partnership with G42, the UAE's sovereign AI company — a collaboration launched two and a half years ago with support from both the U.S. and UAE governments.
Also Read: Nvidia Gains As US Greenlights Major AI Deal With UAE
Brad Smith, Microsoft's president, told the Financial Times on Monday that the company became the first under the Trump administration to secure a license in September to export Nvidia's AI chips to the UAE.
Between 2023 and 2029, Microsoft will invest $15.2 billion in the UAE, including $1.5 billion in equity in G42, more than $10 billion in capital expenditures for advanced AI and cloud data centers, and over $3 billion in operating costs.
These licenses enable Microsoft to ship the equivalent of 60,400 additional A100 chips, in this instance involving Nvidia's even more advanced GB300 GPUs.
These chips enable access to advanced AI models from OpenAI, Anthropic, and Microsoft itself, supporting national-scale innovation across the public and private sectors.
Microsoft also launched initiatives to strengthen the UAE's human capital and research ecosystem, including the Global Engineering Development Center and the AI for Good Lab in Abu Dhabi.
Smith told the Financial Times that Microsoft views the Middle East as a key hub for spreading AI technology across the Global South — spanning the Middle East, Southern Europe, Africa, and East Asia.
He warned that uneven AI adoption could widen global economic inequality. He emphasized that the race to deploy AI broadly is even more critical than the race to develop cutting-edge models.
Smith said the strengthened partnership between the U.S. and UAE is central to this effort. He noted that new U.S. export permits allow Microsoft to quadruple its AI computing power in the UAE and expects to apply for additional licenses within the next six to twelve months, confident the company will meet all regulatory conditions.
Price Actions: Nvidia shares were up 2.55% at $207.67 at the time of publication on Monday. MSFT is up 0.96%.
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