US approves advanced chip sales to Abu Dhabi’s G42

The US has agreed to allow sales of advanced AI chips to G42, an Abu Dhabi-based AI firm, according to people familiar with the matter.

The approval is part of a wider US-UAE agreement that includes measures to prevent technology from being diverted to China.

Sources did not provide further details on the security conditions tied to the export approvals.

G42 previously committed to divest from China’s Huawei, which helped enable a US$1.5 billion partnership with Microsoft in 2024.

Earlier US export approvals allowed American companies, such as Microsoft and Oracle, to use advanced chips in UAE projects, but did not include Emirati firms like G42.

Microsoft’s president Brad Smith said strict conditions were required for those approvals.

G42, chaired by UAE national security adviser Sheikh Tahnoon bin Zayed Al Nahyan, operates subsidiaries in areas such as space and genomics, and is investing in data centers and cloud computing.

🔗 Source: Bloomberg

🧠 Food for thought

Implications, context, and why it matters.

Approval tied to security terms that set chip volumes and diversion risk

The US Commerce Department approved exports equal to up to 35,000 Nvidia Blackwell chips to G42 and Saudi Arabia’s Humain, worth about $1 billion, subject to strict security and reporting terms 1.
Public details omit which chip models beyond Blackwell are covered and the exact quantities. Required safeguards stay unclear, including telemetry and end-use monitoring, with possible audits or cloud limits.
That uncertainty makes it hard to judge whether 35,000 is an initial allocation or a cap, or whether safeguards will block transfer to restricted parties despite G42’s prior Huawei divestment.

Compliance vendors eye UAE data centers under BIS’s May 2025 due diligence guide

UAE data centers will seek help from data center operators and cloud providers. Venture investors plus sellers of compliance or monitoring or data-sovereignty tooling (tools that keep data within approved jurisdictions) see demand rise after BIS raised due diligence on May 13, 2025 2.
New rules require strict screening to avoid supporting AI models for military-intelligence or weapons of mass destruction (WMD) end uses 2. Companies should update compliance programs and verify licenses for semiconductor transfers 2 3.
Vendors with telemetry tools plus geofencing (software controls that limit use to approved locations), reporting or supply chain protection should ask what precise controls the G42 approval requires. These should go beyond general due diligence. Clear answers will shape products and partnerships in the UAE compliance tooling market.