Trump Finalizes AI Semiconductor Deal with UAE as Part of $1.4 Trillion Investment Push

President Donald Trump has unveiled a new AI chip agreement with the United Arab Emirates (UAE), forming part of a broader $1.4 trillion initiative aimed at deepening technological cooperation between the two nations.

On Friday, Trump announced a major development in technology and trade relations with the UAE, granting the country access to high-end artificial intelligence (AI) semiconductors produced by American firms.

This announcement follows Trump’s recent visit to Abu Dhabi, where the deal was finalized. It marks a significant step forward both diplomatically and economically. The agreement comes at a time when the UAE is carefully balancing its longstanding relationship with the United States while expanding economic engagement with China, its top trading partner.

This arrangement is seen as a substantial advancement for the UAE’s goal of becoming a prominent force in AI innovation. Trump mentioned that safeguards would be in place to ensure proper handling of the chips, including American oversight of data centers involved.

“We’re making great progress for the $1.4 trillion that UAE has announced it intends to spend in the United States,” Trump said during his concluding stop on a tour of the Gulf region, which included Saudi Arabia and Qatar.

“Yesterday, the two countries agreed to create a path for UAE to buy some of the world’s most advanced AI semiconductors from American companies — a very big contract,” he added.

This deal is expected to contribute billions to both economies and tighten bilateral economic links. It also supports the UAE’s previously declared plan from March to invest $1.4 trillion in various U.S. industries over the next ten years, including energy, AI, and manufacturing.

“This deal will accelerate the UAE’s plans to become a really major player in artificial intelligence,” Trump noted.

The agreement also reflects the Trump administration’s strong belief in U.S. tech supremacy and its willingness to collaborate with global partners on cutting-edge innovations in a secure environment.