The United Arab Emirates (UAE) has significantly expanded its access to US-made artificial intelligence (AI) semiconductors in return for recently supporting US military operations against Iran.

According to the Wall Street Journal on the 14th (local time), the UAE conducted dozens of airstrikes against Iran, intercepted hundreds of missiles, and played a crucial role in maintaining crude oil transportation through the Strait of Hormuz.

▲ Fruition of economic diversification strategy...achieving long-sought goal of securing AI semiconductors

This measure was evaluated as the result of the UAE's years-long effort to diversify its economy by acquiring US technology.

At the same time, analysts noted that this case demonstrates that AI semiconductors have become a key strategic asset in diplomatic and security negotiations.

▲ US export regulation changes...upgraded from China group to ally level

The US Commerce Department announced on Friday that the Trump administration changed export regulations and classified the UAE at the same level as European countries, South Korea, and India.

As a result, the UAE can now more freely purchase technologies with potential military applications, military supplies, and energy infrastructure.

Previously, the UAE was classified in the same country group as China and Yemen, subject to relatively strict export controls.

The decision raised concerns about potential conflicts of interest, as it came after the UAE's national security advisor became a major business partner of the Trump family last year.

▲ G42 able to freely purchase Nvidia AI semiconductors

With the regulation change, G42, a representative UAE AI company, can now purchase AI semiconductors from US companies such as Nvidia without separate restrictions for at least the next nine months.

Additionally, data center construction projects being pursued by US companies including Microsoft and OpenAI in the UAE are expected to proceed more smoothly. Previously, Commerce Department approval was required to export semiconductors necessary for operating AI models, and approval procedures often faced delays of several months.

Industry analysts estimated that the economic value of this regulatory relaxation could reach billions of dollars.

▲ G42 pursuing transformation into US company

According to multiple sources, G42, controlled by UAE National Security Advisor Sheikh Tahnoon bin Zayed Al Nahyan, is pursuing a plan to transform into a US company in which American investors hold the majority stake.

Tahnoon is also the half-brother of the UAE president.

▲ Semiconductor diplomacy continuing from Biden administration

The UAE government, centered around Tahnoon, has been consistently requesting expanded access to US-made AI semiconductors since the Biden administration.

Particularly after the war with Iran began, it is known that the UAE visited the White House directly to request a change in country classification again. At that time, the UAE actively cited the example of India, which saw expanded trade benefits after being designated as a Major Defense Partner of the US in 2016.

Sources reported that the White House showed a much more favorable response this time.

▲ Enhanced security cooperation with US as decisive factor

The UAE normalized relations with Israel by signing the Abraham Accords in 2020 and subsequently participated in military operations with the US in response to Iran.

A US government official explained that this conduct became a decisive turning point in recognizing the UAE as a trustworthy ally. Another official stated that the US continues to strengthen cooperation with allied nations for security in the Middle East region and to prevent the spread of US technology.

The White House completely denied allegations of conflicts of interest.

▲ UAE "new milestone in bilateral cooperation"

Yusuf Al-Otaiba, UAE Ambassador to the US, evaluated this measure as a decision to advance bilateral cooperation that has continued for decades to the next level.

The UAE's efforts to secure semiconductors began in earnest in the latter half of the Biden administration, while Tahnoon was simultaneously known to be investing effort in building relationships with the Trump family.

Four days before President Trump's second inauguration, Tahnoon signed a contract to invest $500 million in World Liberty Financial, a cryptocurrency company founded by the Trump family, acquiring a 49% stake.

Democrats criticized such investment as having potential conflicts of interest with the Trump administration's foreign policy. Separately, the UAE promised to invest a total of $1.4 trillion in the United States.

[AFP/Yonhapnews]

▲ Security concerns persist...resistance from China hawks

When the Trump administration permitted some AI semiconductor exports to the UAE last year, China hawks criticized the semiconductors for potentially weakening US AI competitiveness.

These concerns are being raised again following the Commerce Department decision. Some pointed out that the construction of US state-of-the-art AI infrastructure overseas itself is strategically undesirable.

Michael Sobolik, senior fellow at the Hudson Institute, commented, "While it is true that the UAE has been an excellent partner for the US on Iran issues, it doesn't mean they have proven capable of securely protecting data centers."

▲ US confirms promise to protect sensitive technology...Congress intensifies investigation into conflicts of interest

The US Commerce Department explained regarding this regulation change that "the UAE confirmed its commitment to prevent the leakage or misuse of sensitive US technology."

The decision is also drawing Congressional attention due to the financial relationship between Tahnoon and President Trump.

In his financial disclosure released last month, President Trump stated that he earned $263 million from the sale of World Liberty Financial shares. This was one of the largest sources of his 2025 income.

Democratic Representative Sydney Kamlager-Dove criticized it in a House hearing, saying "it looks like an illegal quid pro quo transaction."

In response, Jeffrey Kessler, a Commerce Department official in charge of export controls, countered that he has never discussed UAE semiconductor issues with the Trump family or World Liberty executives. He evaluated this measure as "one of the administration's most significant achievements."

▲ UAE's changed diplomatic strategy after the war

Initially, the UAE requested that the US exercise restraint in war with Iran, but when it began to be the target of concentrated Iranian drone attacks, it switched strategies.

Subsequently, it actively cooperated with US and Israeli military operations and coordinated airstrikes, and at a recent Group of Seven (G7) summit held in France, President Trump publicly praised UAE President Sheikh Mohamed bin Zayed Al Nahyan.

President Trump stated, "He is a true warrior," and "He has long been an ally of the United States, but that relationship has grown even stronger since I took office."