The UAE is becoming an American supercomputing hub. Opportunity for Israel or competition?

It's not just Gaza on the Trump administration's agenda. It turns out that the US has approved billions of dollars worth of artificial intelligence chips from Nvidia to the Emirates.

This is the first approval of its kind since the restrictions were tightened by the Biden administration in 2023. The licenses were granted under a new bilateral agreement: every dollar of chips that reach Abu Dhabi will be matched by an Emirati investment in the US and will be operated through American cloud providers.

The move advances the giant data center project in Abu Dhabi that will be used by OpenAI. What it means: The Emirates is becoming a regional supercomputing hub with an American stamp, with the aim of reducing the Chinese footprint and ensuring that equipment and data are managed by American players.

Why is this important to Israel? In the short term, this is mainly an announcement that signals better familiarity with GPU resources in the region, which may ease availability and costs for companies operating from Israel, even without infrastructure there. In the medium term, it is also competition Israel.

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