The United Arab Emirates (UAE) and the United States have inked a significant agreement for the construction of the largest artificial intelligence campus outside the US during Donald Trump’s visit to the Middle East. This deal, however, has stirred concerns due to potential technology access by China, an issue that was restricted under the previous administration.

The agreement entails granting the UAE expanded access to cutting-edge AI chips, with possibilities of importing 500,000 of Nvidia’s top AI chips annually from 2025. The deal was solidified with key figures like Nvidia’s CEO Jensen Huang alongside Trump and UAE president Sheikh Mohamed bin Zayed Al Nahyan at a palace in Abu Dhabi.

This move signifies a crucial victory for the UAE in its efforts to establish a global presence in AI, navigating its relationships with the US and China. The agreement highlights the Trump administration’s trust in managing the chips securely, with stipulations for US companies to oversee data center operations.

Top CEOs in the AI and chip industry, including OpenAI’s Sam Altman and Nvidia’s Huang, have shown support for the deal, anticipating broader product exposure on the global stage and substantial profits. The agreement also includes commitments from the UAE to align national security regulations with the US and prevent technology diversion.

Moreover, the centerpiece of the agreement is the construction of a 10-square-mile AI campus in Abu Dhabi, boasting 5 gigawatts of power capacity for AI data centers, operated by American companies. This move is seen as a strategic recalibration of the UAE’s tech strategy, aligning with US standards while maintaining trade ties with China.