Loud thunder but little rain? The "investment for chips" deal in the Middle East is progressing slowly, and reports indicate that Jensen Huang feels frustrated
NVIDIA's export of billions of dollars in AI chip transactions to the UAE is progressing slowly, and the media reports that Jensen Huang feels frustrated. The agreement was announced in May, with the UAE committing to invest at least $1 billion in the U.S. by the end of the year in exchange for at least $1 billion worth of NVIDIA chips. Currently, the investment has not materialized, and the deal seems "a long way off."
NVIDIA's export agreement for artificial intelligence chips to the UAE is facing delays, with the deal valued at billions of dollars. According to media reports on October 2, the slow progress of the transaction has left NVIDIA CEO Jensen Huang feeling frustrated.
The agreement was announced in May, with the UAE committing to invest at least $1 billion in the U.S. by the end of the year in exchange for at least $1 billion worth of NVIDIA chips. According to sources cited by the media, after months of negotiations, this investment has yet to materialize. The delayed investment in the agreement also means that the completion of this transaction faces significant uncertainty.
Approval from the U.S. Department of Commerce is crucial for the agreement's completion, as the department must allow NVIDIA and other related companies to export chips to the UAE. It can be said that the future of this agreement largely rests in the hands of U.S. Secretary of Commerce Howard Lutnick.
According to sources cited by the media, Lutnick has urged the UAE to complete its investment in the U.S. before his department approves the chip delivery, but prolonged negotiations have slowed the transaction's progress. Sources indicate that Jensen Huang and several NVIDIA executives have privately complained to other government officials about Lutnick's strategy and the slow progress. A senior government official stated that Lutnick has not obstructed the deal, but other officials believe he has delayed the transaction process.
UAE senior government officials stated that the UAE is advancing its agreement, intending to exchange its investments in the U.S. for billions of dollars worth of NVIDIA chips at a 1:1 ratio. Others indicated that the UAE would have to pay for these chips separately.
In response, an NVIDIA executive stated that Huang and others have not complained and emphasized that the company does not care about how the transaction is handled
