NVIDIA Corporation experienced a significant surge in its stock price on October 9, 2025, following the US government's approval of substantial AI chip exports to the United Arab Emirates. This development is a key component of the Trump administration's strategy to enhance AI diplomacy, as emphasized in the official statement, and marks a pivotal moment for NVIDIA in the Gulf region.
Approval of Export Licenses to the UAE
The approval of export licenses to the UAE represents NVIDIA's first such authorization since the current administration took office. This move is part of a bilateral AI agreement established in May 2025, which links chip exports to reciprocal investments from the UAE in American projects. Under this agreement, the UAE is committed to matching chip imports with equivalent investments in the US, ensuring that American economic interests benefit from the technology transfer.
Facilitation of AI Hardware Shipment
The newly granted licenses will facilitate the shipment of AI hardware to support a significant five-gigawatt data center in Abu Dhabi, with OpenAI playing a crucial role as a partner. The agreement allows for the export of up to 500,000 high-end chips annually, although initial approvals have reportedly excluded the Abu Dhabi-based AI firm G42. This initiative is also viewed as part of a broader strategy to curb China's influence in AI infrastructure while reinforcing American technological ties in the Middle East.
While NVIDIA's recent stock surge highlights advancements in AI technology, Avalanche is also making waves in the blockchain sector with its innovative subnet architecture. For more details, see Avalanche's growth.