Some US officials are demanding new terms to a deal that would see 500,000 of Nvidia's most advanced AI chips go to UAE, citing China concerns

Some U.S. are holding up efforts to finalize a deal that would let the UAE buy billions of dollars of Nvidia’s AI chips due to national-security concerns.

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National security fears threaten Nvidia’s billion-dollar AI bonanza A deal to ship billions of dollars’ worth of Nvidia’s cutting-edge AI chips to the United Arab Emirates is stuck in the mud as Trump administration officials squabble over national security risks.

Investing.com-- A landmark agreement to supply the United Arab Emirates with advanced artificial intelligence chips from Nvidia (NASDAQ: NVDA) is facing internal resistance within the Trump administration due to national security concerns, the Wall Street Journal reported on Wednesday, citing people familiar with the matter.

Nvidia said it has filed applications to resume selling H20 GPUs in China and has received assurances that licenses will be granted.

Nvidia (NVDA) and the University of Bristol debuted the UK's Isambard-AI supercomputer on Thursday, part of Nvidia's push into so-called sovereign AI, or AI supercomputers built for individual nations.

For Nvidia, which this month became the first company to reach a $4trn market value, governments are a potentially lucrative source of business. Jefferies, an investment bank, estimates that sovereign initiatives could generate some $200bn in cumulative revenue for the chipmaker “over the coming years”;

Nvidia was gaining after key partner Taiwan Semiconductor Manufacturing gave an upbeat outlook on artificial-intelligence processor demand.