The US has approved several billion dollars’ worth of Nvidia AI chip exports to the United Arab Emirates, marking a major step in Washington’s deepening technology partnership with the Gulf state, Bloomberg reported.

The Commerce Department’s Bureau of Industry and Security recently issued the export licenses as part of a bilateral AI agreement signed in May, which aims to accelerate data center construction and AI development in the UAE.

In return, Abu Dhabi reportedly agreed to make reciprocal investments in the US, including commitments tied to AI infrastructure and semiconductor manufacturing.

The deal allows the UAE to import up to 500,000 Nvidia chips annually starting in 2025 — a program that could extend through 2030.

A US Commerce Department spokesperson called the initiative a “transformational US–UAE AI partnership.” Nvidia declined to comment.

The approval follows President Donald Trump’s May Gulf tour, during which he announced $600 billion in regional investment commitments, including chip purchases from Nvidia, AMD, and Qualcomm.