The UAE and the US have signed a landmark agreement that will see the Gulf nation build the world’s largest artificial intelligence campus outside the US—a deal previously stalled due to Washington’s concerns over Chinese access to sensitive technology.

Although the agreement did not specify which advanced AI chips, such as those produced by Nvidia, would be used in the UAE’s data centers, sources indicated the deal could grant the country expanded access to high-end semiconductors.

Notably, Nvidia CEO Jensen Huang appeared in televised footage alongside former US President Donald Trump and UAE President Sheikh Mohamed bin Zayed Al Nahyan at a palace in Abu Dhabi on Thursday.

Finalized during Trump’s visit, the agreement marks a diplomatic and technological win for the UAE, which is striving to become a global AI leader while balancing ties with its key ally, the US, and top trading partner, China.

It also reflects the Trump administration’s trust in the UAE’s ability to securely handle US technology, with American firms set to operate the data centers.

According to the White House, the UAE will invest in US-based data centers equal to or larger in scale than those planned at home and will align its national security protocols more closely with US standards to prevent tech misuse.

Central to the deal is a 10-square-mile AI campus in Abu Dhabi, set to provide 5 gigawatts of power—enough for 2.5 million of Nvidia’s B200 chips, according to Rand analyst Lennart Heim on X. The site will be built by the state-backed G42, while US companies will manage operations.

The deal also highlights broader US-UAE tech collaboration, with Qualcomm planning an AI engineering center and Amazon Web Services supporting local cybersecurity and cloud adoption.

It marks a significant shift in US policy, easing chip export restrictions for strategic allies. US AI advisor David Sacks noted the controls were “never intended to capture friends, allies, or strategic partners.”

The UAE has invested billions to become a global AI hub through state-backed firms like G42 and MGX, which hold stakes in US companies including OpenAI and xAI. Microsoft also invested $1.5 billion in G42 last year.

The agreement signals tighter US-UAE tech alignment amid broader efforts to counter China’s influence while strengthening partnerships in the Middle East.