Microsoft (NASDAQ:MSFT) has received authorization from the U.S. government to export advanced Nvidia (NASDAQ:NVDA) AI chips to the United Arab Emirates, marking a key step in the company’s expansion across the Middle East, according to the Financial Times.

Brad Smith, Microsoft’s president, confirmed that in September, the company became “the first company to receive a license under the Trump administration” to ship Nvidia’s AI chips to the UAE.

The approval follows a May agreement between U.S. President Donald Trump and UAE President Sheikh Mohamed bin Zayed al-Nahyan to establish a major AI data center campus in Abu Dhabi, part of broader efforts to strengthen technological collaboration between the two nations.

Microsoft’s initiative had faced delays tied to U.S. Department of Commerce export restrictions, which limit the sale of high-performance Nvidia chips used to train and operate sophisticated AI models.

The newly granted license removes a major hurdle for Microsoft’s regional ambitions and underscores Washington’s selective approach to balancing AI innovation and national security concerns in its export policy.

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