Menu

Search

  |   Politics

Menu

  |   Politics

Search

Trump’s Gulf Tour Highlights AI Chip Deal and Strategic U.S. Partnerships

Trump’s Gulf Tour Highlights AI Chip Deal and Strategic U.S. Partnerships. Source: The White House, Public domain, via Wikimedia Commons

U.S. President Donald Trump wrapped up his Gulf tour on Thursday with a speech to American troops at Al Udeid Air Base in Qatar before heading to the United Arab Emirates (UAE) to deepen diplomatic and economic ties. A major highlight of the trip is a preliminary deal between the U.S. and UAE for the export of 500,000 Nvidia (NASDAQ:NVDA) advanced AI chips annually, beginning this year.

This agreement, if finalized, could position the UAE as a rising global hub for artificial intelligence by fueling rapid development of data centers critical to training AI models. However, U.S. national security officials have raised concerns about potential technology transfers, especially amid fears that such chips could be redirected to China. The terms of the deal may still change.

Trump’s four-day regional visit also included the signing of several major deals. Qatar Airways agreed to purchase up to 210 Boeing (NYSE:BA) widebody jets, while Saudi Arabia pledged $600 billion in investments in the U.S., alongside $142 billion in arms deals. These announcements underscore Trump’s push to reinforce economic alliances with Gulf nations.

Trump also made diplomatic headlines by announcing the removal of long-standing U.S. sanctions on Syria and meeting with Syrian interim President Ahmed al-Sharaa. Although Trump considered a stop in Turkey to attend Russia-Ukraine peace talks, a U.S. official confirmed he would return directly to Washington.

The final leg of Trump’s trip emphasizes the strategic importance of AI and advanced tech in U.S.-Gulf relations. If the AI chip exports proceed as planned, the Gulf region—particularly the UAE—could emerge as a key player in the global AI race, alongside the U.S. and China.

  • Market Data
Close

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.