The U.S. government has approved export licenses that allow Nvidia’s (NVDA) microchips and processors to be sold to the United Arab Emirates (UAE).
The move opens a lucrative new market for Nvidia and should help to accelerate the UAE’s artificial intelligence (A.I.) ambitions.
Specifically, it is Microsoft (MSFT) that has secured export licenses from the Trump administration that allow it to ship Nvidia’s (NVDA) microchips to the UAE.
The export licenses enable Microsoft to send 60,400 Nvidia A100 microchips and GB300 graphics processing units (GPUs) to the United Arab Emirates.
The UAE has said that it wants to become a global data centre hub and run A.I. and cloud-computing data centres in the dessert.
In a blog post, Microsoft wrote: “While the chips are powerful and the numbers are large, more important is their positive impact across the UAE… We’re using these GPUs to provide access to advanced A.I. models.”
Nvidia’s stock is up 2% in premarket trading on Nov. 3 after news of the UAE sales broke. So far this year, the company’s shares have risen 46% to trade at $202.49 U.S. per share.
