Trump Clears Advanced AI Chip Exports to UAE Amidst Investment Controversy
Washington, Tuesday, 3 February 2026.
The Trump administration has authorized the export of advanced AI semiconductors to the UAE, overturning prior national security restrictions. This policy shift is now drawing sharp scrutiny following reports of a $500 million investment by a key UAE official into a Trump-affiliated cryptocurrency venture just prior to the decision.
A Strategic Reversal on Semiconductor Exports
The approval of these exports represents a decisive pivot in American trade policy. Specifically, the United States has cleared the sale of up to 35,000 Nvidia Blackwell units to entities in Saudi Arabia and the United Arab Emirates [2]. This move directly counters the strategy of the Biden administration, which had previously rebuffed similar requests due to intelligence assessments indicating a high risk that advanced semiconductors could be diverted from Abu Dhabi to Beijing [1]. The Trump administration has framed this decision as a necessary step to maintain U.S. leadership in the region, arguing that isolating Gulf allies would only push them closer to Chinese technology providers.
The Trillion-Dollar Economic Pledge
Underpinning this diplomatic thaw is a massive economic commitment from the Gulf state. Following a meeting between President Trump and Sheikh Tahnoon Bin Zayed Al Nahyan shortly after the inauguration last year, the UAE pledged to invest $1.4 trillion in the U.S. economy over a decade [1]. This ambitious plan suggests an average capital injection of 0.14 trillion per year, creating a powerful economic incentive for the administration to loosen export controls. Sheikh Tahnoon, a central figure in these negotiations, holds a unique portfolio: he is the UAE’s national security adviser, the brother of the UAE president, and the chairman of key artificial intelligence firms MGX and G42 [1].
The Crypto Connection and Alleged Conflicts
However, the timing of these approvals has ignited a firestorm of controversy regarding potential conflicts of interest. Reports have surfaced that a UAE royal family member—identified in some circles as the “Spy Sheikh”—purchased a $500 million stake in World Liberty Financial (WLFI), a decentralized finance project with leadership ties to the Trump family [7][8]. This investment reportedly took place just four days before President Trump took office and prior to the administration granting the UAE access to the restricted chips [5][7]. Further intensifying scrutiny, Senator Chris Murphy has alleged that the UAE investor secretly provided $187 million to Donald Trump and $31 million to a Trump-appointed Middle East envoy as part of the broader financial arrangement [8].
Political Backlash and Administration Defense
The revelation has triggered immediate legislative pushback. On February 1, 2026, Senator Elizabeth Warren called on the administration to cancel the chip deal, characterizing the sequence of events as “corruption, plain and simple” [5]. Congressional Democrats have also raised concerns that the deal lacks adequate safeguards to prevent Chinese espionage, a fear echoed by former Pentagon officials who warn that complex financial vehicles like WLFI are difficult to monitor [5][8]. In response, White House spokesperson Kush Desai defended the policy, stating that the chip exports are subject to “stringent security and reporting requirements” and asserting that the administration is cementing technological dominance without compromising national security [5].