uae bets big on ai chips, aims to lead in semiconductor race
abu dhabi, Monday, 26 May 2025.
The United Arab Emirates is making a significant push into the AI and semiconductor sectors. Driven by a global surge in AI computing needs, the UAE plans to import 500,000 advanced Nvidia chips annually. This supports AI model training. The nation is also partnering with the U.S. to construct a massive 5-gigawatt AI data center park. This initiative is backed by the sovereign wealth fund Mubadala. The UAE envisions AI surpassing oil as its primary economic driver by 2030.
Nvidia’s strategic advantage in the uae
The UAE’s focus on importing Nvidia chips highlights Nvidia’s crucial role in the AI sector [1]. This move strengthens Nvidia’s market position as a leading provider of AI solutions [GPT]. The planned import of 500,000 advanced Nvidia AI chips annually underscores the demand for Nvidia’s technology [1]. The UAE has invested $1.4 trillion in the U.S. in exchange for the right to import these chips [1]. This partnership enhances Nvidia’s revenue potential and influence in the Middle East [GPT].
China ai chip development
Nvidia is also actively adapting to U.S. export restrictions by developing new AI chips for the Chinese market [2]. The company plans to launch a cheaper Blackwell AI chip for China, priced between $6,500 and $8,000 [2]. This is in response to U.S. export curbs that have impacted Nvidia’s sales in China [2]. The new chip is expected to be based on Nvidia’s RTX Pro 6000D and use conventional GDDR7 memory [2]. Mass production is planned to start as early as June [2] [alert! ‘status not confirmed’].
Challenges and market dynamics in china
Jensen Huang, Nvidia’s CEO, has been critical of U.S. AI chip restrictions on China [4]. Huang stated that banning the H20 chip is not effective, as power is cost-effective and land is plentiful in China [4]. Nvidia’s market share in China has decreased from 95% before 2022 to 50% currently [2]. The ban on the H20 model forced Nvidia to write off $5.5 billion in inventory [2]. These dynamics highlight the challenges Nvidia faces in navigating geopolitical tensions while maintaining its market presence [GPT].
broader implications and future outlook
The UAE’s ambitious AI plans, including expanding its national AI investment fund to $100 billion within a decade, signal long-term growth for the AI sector [1]. By 2025, the UAE anticipates 87% of public schools will have completed AI curriculum upgrades, producing 100,000 AI graduates annually [1]. These initiatives, coupled with Nvidia’s strategic chip development for different markets, indicate a robust future for AI and semiconductor industries [GPT]. Jensen Huang met with Japanese Prime Minister Shigeru Ishiba in April 2025 to lobby for increased power generation for AI, indicating the growing infrastructure needs [4].