Big thunder, little rain? Progress slow on Middle East’s “investment-for-chips” deal; reports say Jensen Huang is frustrated

Nvidia’s deal to export artificial intelligence chips to the UAE faces delays, with the transaction valued at several billion dollars. According to media reports on October 2, the slow progress of the deal has left Nvidia CEO Jensen Huang feeling frustrated.

The agreement was announced in May, with the UAE pledging to invest at least $1 billion in the US by the end of the year in exchange for at least $1 billion worth of Nvidia chips. According to sources cited by the media, after months of negotiations, this investment has still not been realized. The delayed investment in the agreement also means that the deal’s completion faces great uncertainty.

Approval from the US Department of Commerce is critical for the deal’s completion, as the agency must permit Nvidia and other related companies to export chips to the UAE. In effect, the future of the deal rests largely in the hands of US Commerce Secretary Howard Lutnick.

According to sources cited by the media, Lutnick has urged the UAE to complete its investment in the US before his department approves the chip delivery, but protracted negotiations have slowed the progress of the deal. According to sources, Jensen Huang and several Nvidia executives have privately complained to other government officials about Lutnick’s strategy and the slow pace of progress. One senior government official said Lutnick did not obstruct the deal, but other officials believe he has slowed down the process.

Senior UAE government officials stated that the UAE is promoting the agreement, aiming for a 1:1 ratio of UAE investment in the US to trade for billions of dollars worth of Nvidia chips. Others said that the UAE would have to pay for the chips separately.

In response, a Nvidia executive stated that Jensen Huang and others had not complained, and said the company does not care about how the deal is being handled.

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