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A huge financial agreement involving Nvidia Corporation (NASDAQ:NVDA) for providing cutting-edge AI chips to the UAE has been stuck for several months, reportedly causing frustration for CEO Jensen Huang as U.S. Commerce Secretary Howard Lutnick urges Abu Dhabi to secure investments before any shipments can go forward.
Nvidia has achieved a market capitalization of $4.59 trillion, with its stock increasing by 58.97% over the previous year and showing a rise of 36.61% in 2025 thus far. On Thursday, shares rose by 0.91%, according to Benzinga Pro.
This agreement, revealed in May, was part of a strategy by the White House to enhance U.S. technological influence internationally while countering China’s ambitions in AI.
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Despite the announcement, Emirati investments have yet to be finalized, leaving some officials puzzled, according to the Wall Street Journal, citing informed sources.
The delay in the deal is viewed as a challenge for Huang and White House AI Advisor David Sacks, who believe that such agreements are vital for steering U.S. tech policy and sustaining superiority over China in the AI competition.
“Sacks and Secretary Lutnick are key players in the President’s AI strategy, and they are working earnestly to finalize agreements for the benefit of the American public,” a White House spokesperson Kush Desai stated.
Approval from the Commerce Department is essential before Nvidia can deliver any chips.
Lutnick has made approval contingent upon the UAE finalizing its investments in the U.S., while also expressing concerns about the Gulf nation’s close ties with China, as reported.
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Huang and other Nvidia executives have quietly expressed their discontent over the hold-ups, according to sources.
One high-ranking Nvidia employee dismissed claims that the company is overly concerned, as claimed in the report.
An Nvidia representative told Benzinga through email that Nvidia is supportive of the Trump administration’s AI initiatives, including the deals pertaining to the Middle East. “We are eager to offer any necessary assistance.”
The Commerce Department has not yet responded to Benzinga’s inquiries for comments.
The UAE agreement was highlighted by President Donald Trump during his visit to Abu Dhabi in May, as part of what the White House claimed was over $200 billion in mutual agreements.
