The United Arab Emirates and the United States have signed a deal to build the largest artificial intelligence campus outside the United States for the Gulf nation, one of several deals surrounding AI during Donald Trump's visit to the Middle East.

But the deal has also attracted attention because it will face restrictions in a situation where the last administration is concerned about Washington's concerns that China might use the technology.

The agreement to establish a campus will allow the UAE to expand access to advanced AI chips. The UAE has not said which AI chips can be included in data centers, but sources told Reuters that starting from 2025, the UAE could be allowed to import 500,000 of Nvidia's state-of-the-art AI chips.

NVIDIA CEO Jensen Huang was seen on TV videos at the Abu Dhabi Palace with Donald Trump and UAE President Sheikh Mohamed Bin Zayed al Nahyan.

The deal is a major victory for the UAE, which has been trying to balance its ties with its long-term allies and its largest trading partner, China. The Gulf of Mexico State has been spending billions of dollars to promote becoming a global AI player. But the ties to China are limited in line with the U.S. chips under former President Joe Biden.

The deal reflects the Trump administration’s confidence that chips can be managed safely, partly because of the requirement that data centers be managed by U.S. companies.

The United States has been at the forefront of AI technology and innovation, but over the past year, China has become a serious competitor. Despite Trump’s confidence, some fear that the amazing deal with Persian Gulf countries could further reduce our control over emerging technologies. There are also concerns that China will be able to access these data centers for its own benefit.

Senior CEOs of AI and chip companies, such as Openai's Sam Altman and Nvidia's Huang, seem to support such deals. It can bring their products to a larger world stage and they will make a huge profit.

The White House said the AI ​​agreement “includes UAE’s commitment to investing, building or investing in U.S. data centers, at least as powerful and powerful as the UAE.”

“The agreement also contains the UAE’s historic commitment to further align its national security regulations with the United States, including strong protections to prevent the transfer of American agricultural product technology.”

The U.S. Department of Commerce said the agreement announced Thursday is at the heart of the 10-square-mile (25.9-square-kilometer) AI campus in Abu Dhabi, with a 5 GW artificial intelligence data center.

The campus will be built by the Abu Dhabi state-backed company G42, but U.S. Commerce Secretary Howard Lutnick said in a press release that “U.S. companies will operate data centers and provide U.S.-managed cloud services throughout the region.”

The U.S. fact sheet also describes Chip Company Qualcomm, a cloud unit for technology and commerce companies working in AI-related engineering centers, Amazon Web Services, which will work with local partners on cybersecurity and facilitating cloud adoption.

For years, the United States has adopted a trade protectionist policy to curb China's use of high-level semiconductors, including ensuring that chips do not eventually enter the country through third parties.

Rules under Trump are relaxing, and his AI Tsar Ai Czar David Sacks said in Riyadh on Tuesday that the Biden administration's export control measures "never intended to capture friends, allies, strategic partners."

The most advanced chips made by companies such as NVIDIA allow the UAE to have more chips, which marks a major turnaround.

"This shift allows (the UAE) to deepen its technical partnership with the United States while still retaining trade relations with China," said Mohammed Soliman, senior fellow at the Middle East Institute.

"This does not mean giving up on China, but it does mean recalibrating the technology strategy to align with the most important U.S. standards and protocols: computing, cloud and chip supply chains," he said.

When Bin Zayed Al Nahyan visited Washington in December in the final days of his presidency in Biden, AI was the first on the agenda.

The G42 and MGX are the state-link vehicles that were picked to drive UAE AI investment, and are also investing in U.S. companies such as OpenAI and Elon Musk's Xai, while Microsoft agreed to invest $1.5 billion in the G42 last year.

The deal was backed by security assurance, and the G42 had previously begun depriving the Chinese hardware it used and selling Chinese investments under pressure from the United States.

Nevertheless, major Chinese companies like Huawei and Alibaba Cloud still exist in the UAE, and organizations that have conducted AI chip smuggling from countries such as Malaysia, Singapore and the UAE, told Reuters in February.