First-time Lifting of Export Ban on Nvidia AI Chips; Microsoft Bets $15.2 Billion on the UAE

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The U.S. government has approved Microsoft’s export of advanced AI chips to the UAE, a move that immediately unlocked the tech giant’s massive $15 billion investment plan in the Gulf region.

Microsoft President Brad Smith confirmed on Monday, the company obtained an export license from the U.S. Department of Commerce in September, becoming the first U.S. company this year allowed to ship Nvidia’s latest AI chips to the UAE.

Following this, Microsoft announced a total investment commitment of $15.2 billion covering 2023 to 2029. Between 2026 and 2029, the company plans to invest over $7.9 billion in the UAE—$5.5 billion for AI and cloud infrastructure, and around $2.4 billion for operating expenses and local recruitment.

The move is seen as a key step for the U.S. in consolidating ties with the UAE. This not only means Microsoft is doubling down in the global race for AI infrastructure, but also highlights the UAE’s rapidly rising strategic position as a tech hub in the Middle East, potentially becoming a crucial node for spreading AI technology to Southern Europe, Africa, East Asia and other “Global South” regions.

Clearing Export Barriers, Huge Investments Land

Microsoft’s massive investment commitment comes along with key policy relaxations. According to reports, the $15.2 billion investment covering 2023 to 2029 is part of Microsoft’s efforts to help the UAE achieve economic diversification and transform into a global technology center.

Specifically, from 2026 to 2029, Microsoft plans to invest over $5.5 billion in capital expenditure in the UAE for cloud and AI infrastructure, with about $2.4 billion for operating expenses and local recruitment. Brad Smith stated:

“We are seeing demand here growing explosively.”

Microsoft’s prior investment in the UAE was already considerable. Over the past three years, the company had already invested $7.3 billion. The new commitment means Microsoft’s annual expenditure in the 2023–2029 period will be roughly on par with recent years, but with a greater focus on AI and cloud computing hardware infrastructure.

Brad Smith emphasized that obtaining the license was not easy. “Unless you can meet the requirements set by the U.S. government, you cannot get these export licenses,” he said:

“We earned it by meeting very strict cybersecurity, physical security, and other security requirements.”

He added that these security measures are not “a leap of faith,” but strict conditions to ensure the chips are “always under our control.”

Computing Power Surges, Targeting Latest Chips

With the license in place, Microsoft plans to greatly increase its AI computing power in the UAE. According to the plan, Microsoft will nearly double the number of advanced Nvidia chips deployed in the UAE, quadrupling its total computing capacity.

Specifically, with prior approvals from the Biden administration, Microsoft has deployed computing power in the UAE equivalent to 21,500 Nvidia A100 GPUs. The new license will allow the company to ship chips equivalent to 60,400 A100 GPUs, including Nvidia’s latest GB300 products. Brad Smith disclosed these chips will arrive “within months, not years.”

Microsoft expects that as AI demand continues to soar, the company might “need to apply for more licenses within the next 6 to 12 months, or even sooner.”

Microsoft’s cooperation with the UAE has deep roots. In early 2024, Microsoft invested $1.5 billion in Abu Dhabi-based AI company G42, with Brad Smith joining G42’s board of directors. In addition, one of Microsoft’s key partners, OpenAI, has also chosen the UAE as the location for its first Stargate data center project outside the U.S.

Brad Smith believes that the global AI competition has two levels: one is the race to develop advanced models, the other is the “race to diffuse AI.” He noted that the latter may “be more important than the frontier technology race” because it relates to avoiding a widening of global economic inequality. In this context, “stronger ties between the U.S. and UAE become vital,” as the region will play a key role in spreading AI technology to the “Global South.”

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