Nvidia shares rose 1.97% in premarket trading as the U.S. government approved export licenses allowing Microsoft to ship advanced AI chips to the United Arab Emirates. The move marks a significant development in the U.S.-UAE tech partnership and could accelerate the Gulf nation’s ambitions in artificial intelligence. Microsoft confirmed it has secured the necessary export licenses from the U.S. Department of Commerce, making it the first company under President Donald Trump’s administration to receive such approvals. The licenses, granted in September, are based on updated and stringent technology safeguards designed to ensure responsible use of the powerful hardware. The approval enables Microsoft to deliver the equivalent of 60,400 additional Nvidia A100 chips, along with the company’s more advanced GB300 GPUs. These high-performance chips are essential for training and running large-scale AI models. Microsoft emphasized that the real value lies not just in the volume of hardware, but in the broader impact on the UAE’s AI ecosystem. “We’re using these GPUs to provide access to advanced AI models from OpenAI, Anthropic, open-source providers, and Microsoft itself,” the company said in a blog post. “While the chips are powerful and the numbers are large, more important is their positive impact across the UAE.” Brad Smith, Microsoft’s president, highlighted the strong and enduring relationship between the U.S. and UAE governments, one that has persisted across multiple administrations. Speaking at the ADIPEC conference in Abu Dhabi, Smith expressed gratitude to Secretary of Commerce Howard Lutnick for his role in enabling the export licenses. He also acknowledged the bipartisan support, noting the contributions of former Senator Marco Rubio and Democratic leaders in advancing the partnership. “The work that’s being done here is a reflection of a shared vision,” Smith said. “It takes two parties to govern, and we keep that in mind.” In addition to the chip exports, Microsoft announced a major expansion of its investment in the UAE, with a total commitment of $15.2 billion by the end of the decade. This includes a $1.5 billion equity investment in G42, a leading AI company based in Abu Dhabi, and over $5.5 billion in capital expenditures to grow Microsoft’s AI and cloud infrastructure in the region. “We’re really investing in trust,” Smith said. “I think it’s that combination of technology, talent, and trust that you’re seeing come together here in the UAE—around AI, around technology, and really the future of the whole economy.”