Microsoft (MSFT) has received approval from the U.S. government to export Nvidia (NVDA) AI chips to the United Arab Emirates. The license is the first one granted this year under the Trump administration’s export rules. It allows Microsoft to send about 60,400 A100-class chips, including Nvidia’s new GB300 processors, to support its growing AI data centers in the region.
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The company said it met strict government standards on cybersecurity and physical safety to qualify for the export license. The move gives Microsoft a unique position among U.S. tech firms, as recent export limits have restricted similar chip sales to other nations. Nvidia’s most advanced Blackwell chips remain limited to U.S. buyers, according to recent policy statements.
$15.2 Billion Investment in UAE AI Growth
Alongside the export approval, Microsoft confirmed a $15.2 billion investment in the UAE through 2029. So far, $7.3 billion has been spent, and another $7.9 billion will follow in the next four years. The funds will expand Microsoft’s AI infrastructure and build new data centers across the country.
The investment builds on Microsoft’s $1.5 billion partnership with G42, the UAE’s state-backed AI firm. The two companies aim to strengthen local AI services while keeping technology tied to U.S. standards. Microsoft’s Vice Chair and President, Brad Smith, said the new chips will arrive within months, not years, to meet high demand for AI systems in the Gulf region.
A Strategic Boost for Both Nations
The UAE now ranks as the world leader in AI use per person, with 59.4% of its population using AI tools, ahead of Singapore at 58.6%. For Microsoft, the expansion strengthens its role as a key global supplier of AI computing. For Nvidia, the deal supports chip demand despite ongoing export controls.
At the same time, the U.S. government gains a trusted partner in advancing AI development within a closely aligned nation. The license signals a selective approach to export policy that favors cooperation through American companies while maintaining national security oversight.
Is Microsoft Stock a Buy, Sell, or Hold?
On the Street, Microsoft continues to hold analysts’ support with a Strong Buy consensus. The average MSFT stock price target is $632.78, implying a 22.20% upside from the current price.
