Russia

US lawmakers question Trump’s UAE AI chip policy change

RT English · 2026-07-16

AI SUMMARY

• What happened: US lawmakers are scrutinizing former President Trump's decision to ease restrictions on AI chip exports to the UAE, allowing license-free access to advanced technologies. • Why it matters: Critics are concerned about potential conflicts of interest involving Trump's family business dealings with UAE entities, raising questions about national security implications. • What to watch next: Congressional investigations into the policy change and its effects on US national security are expected to continue, alongside discussions about the broader implications for international technology trade.

**Title: US Lawmakers Question Trump's Policy Change on AI Chip Exports to UAE**

The administration of former President Donald Trump is facing scrutiny from Congress regarding its recent decision to ease restrictions on the export of advanced artificial intelligence (AI) chips to the United Arab Emirates (UAE). Critics are raising concerns about potential conflicts of interest, particularly in light of business dealings involving the Trump family.

On Friday, the US Commerce Department announced that the UAE would be eligible for license-free exports and transfers of sensitive technologies, including advanced AI chips and servers. This policy change means that approved entities in the UAE will no longer require individual export licenses from the United States. The administration justified the decision by citing the UAE's support in advancing US national security interests, particularly in relation to operations against Iran.

The UAE has sought this policy change for several years, but previous administrations had blocked it due to concerns that sensitive technology could fall into the hands of China. The new policy grants the UAE a level of access to advanced technologies that is unmatched by any other Middle Eastern nation, including Israel and Saudi Arabia.

The timing of the decision has raised eyebrows, especially as it follows a series of business transactions between entities linked to the UAE and companies associated with Trump and his family. Notably, the controversy revolves around World Liberty Financial (WLF), a cryptocurrency venture launched in 2024 by Trump, his special envoy Steve Witkoff, and their sons. Reports indicate that UAE National Security Adviser Sheikh Tahnoon bin Zayed Al Nahyan purchased a 49% stake in WLF for $500 million last year. Subsequently, a fund chaired by Sheikh Tahnoon, known as MGX, utilized WLF's stablecoin for a $2 billion investment in the cryptocurrency exchange Binance.

Critics argue that these investments coincided with negotiations over AI exports, which initially resulted in the US approving annual sales of 500,000 advanced AI chips for a planned Nvidia-powered AI megacampus in the UAE. The recent policy change culminates in granting the UAE license-free access to this technology.

During a congressional hearing on Tuesday, lawmakers questioned Jeffrey Kessler, head of the Bureau of Industry and Security (BIS), about the administration's handling of advanced AI exports. Representative Bill Keating (D-MA) pressed Kessler on whether he had discussed the UAE AI chip export controls with Witkoff, to which Kessler declined to comment. Keating expressed frustration, asking, “Why are you evading the answer?” He suggested that the situation might involve a conflict of interest related to Witkoff and World Liberty Financial.

Senator Elizabeth Warren, a prominent Democrat on the Senate Banking Committee, voiced similar concerns last week, arguing that the policy effectively grants license-free access to advanced AI chips for both MGX and G42, another UAE company chaired by Sheikh Tahnoon. Warren emphasized that the timing of the policy change raises significant conflict of interest questions.

Chris McGuire, a former senior US export controls official now affiliated with the Council on Foreign Relations, criticized the decision, stating it is “impossible to justify on national security or economic grounds.” He suggested that the only plausible explanation for the policy shift is that “the UAE paid for it.”

Despite the allegations, US and UAE officials have denied that Emirati investments influenced the policy changes. Neither Trump nor Witkoff has publicly commented on the ongoing controversy.

Financial disclosures released last week revealed that Trump earned at least $2.24 billion in revenue in 2025, with approximately $1.16 billion stemming from his family's cryptocurrency ventures. When questioned about these financial disclosures, Trump dismissed the concerns, attributing his gains to a strong stock market.

As the debate continues, lawmakers are expected to further investigate the implications of this policy change and its potential impact on US national security interests. The situation underscores the complexities of international relations and trade, particularly in the rapidly evolving field of technology.

Source: RT English
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