Trump is trading US security and economic control for AI deals in the Gulf

According to Bloomberg, President Trump is deep into AI chip deals across the Middle East, but some of his own top officials are warning these moves are putting both national security and economic control on the line. On his trip through Saudi Arabia, Qatar, and the UAE, Trump signed off on multi-billion dollar agreements that would export some of the most advanced US-made semiconductors available, including chips from Nvidia and AMD. Tens of thousands of these chips are going to Saudi Arabia. Over one million are headed for the UAE. These chips are used to train the same kinds of models behind ChatGPT, battlefield systems, surveillance software, and deep-learning infrastructure. This is not normal tech trade. These chips are considered core strategic assets in the global AI race. They are expensive, highly restricted, and in short supply. And while the deals include vague conditions saying China can’t access the chips, multiple administration officials say those restrictions aren’t legally enforceable and could be bypassed easily. Officials push back on David Sacks over security risks David Sacks, Trump’s White House adviser on AI, is helping lead these negotiations, but he’s become a point of tension. Sacks has been open to proposals from Gulf leaders that senior US officials say are clear security threats, including suggestions that would allow the chips to be housed in facilities with ties to Chinese firms. These weren’t added to the final deal, but the fact they were considered has alarmed many inside the administration. Vice President JD Vance tried to reinforce a different message earlier this year at an AI summit in Paris: “The Trump administration will ensure that the most powerful AI systems are built in the US with American designed and manufactured chips.” Some officials say exporting that much chip power anywhere outside the US goes against that mission entirely. Even if the deals go ahead, the US will still hold the majority of global AI computing resources. But for the first time, countries in the Gulf will have serious AI infrastructure powered by elite American hardware, and that changes the map. White House debates slow-roll as UAE eyes OpenAI partnership Inside the White House, some senior officials are allegedly still trying to delay or block the agreements, especially the UAE deal, which may include a large-scale project by OpenAI, the company behind ChatGPT. AI chip shipments to foreign governments must be reviewed by multiple US federal agencies. That’s one route officials are exploring to introduce tighter restrictions. Another is the administration’s new semiconductor export control policy, which is still being written after tossing out President Biden’s old framework. This rewrite could become a tool for inserting stronger protections against Chinese interference. But Sacks and his allies are pushing for more rapid exports with basic safeguards. They argue that if the US slows things down, other countries will just turn to China’s chipmakers like Huawei, who are catching up fast. “We need our friends, like the kingdom of Saudi Arabia and other strategic partners and allies, to want to build on our tech,” Sacks said this week on stage beside Saudi Arabia’s communications minister. He downplayed any risk, adding, “The possibility of that tech winding up in China is not an issue with a friend like Saudi Arabia at all.” Some of the sharpest criticism is now focused on G42, an Abu Dhabi-based AI firm that once had strong ties to Huawei. The company agreed to separate from Chinese providers in 2023 as part of a $1.5 billion deal with Microsoft, but US officials remain skeptical. G42 is now in talks to buy over one million Nvidia H100 accelerators—one of Nvidia’s highest-end products. Security terms in the UAE agreement are still being written by a working group of American and Emirati officials. These include clauses to stop chip diversion to China and prevent remote access by Chinese firms. But officials say Sacks wants to oversee how that fine print is written, something others in the administration are pushing against. While some said he was speaking from a technical angle, others viewed the comment as reckless. Cryptopolitan Academy: Tired of market swings? Learn how DeFi can help you build steady passive income. Register Now