The United States has reached a preliminary deal with the United Arab Emirates (UAE) that would allow the Gulf nation to import up to 500,000 Nvidia artificial intelligence (AI) chips annually, starting from 2025. This agreement marks a notable advancement in the trade relationship between the two countries, with significant implications for the UAE's technological and economic development.

The imports are expected to commence in 2025, subject to further negotiations and finalization of the terms.

The deal is set to enhance the UAE's capabilities in AI research, development, and application across various sectors, including finance, healthcare, and education.

The annual quota of 500,000 chips underscores the substantial demand for advanced AI technologies in the region and highlights the strategic importance of this partnership between the US and the UAE.