Outsourcer in Chief: Is Trump Trading Away America’s Tech Future?

Over the course of a three-day trip to the Middle East, President Trump and his emissaries from Silicon Valley have transformed the Persian Gulf from an artificial-intelligence neophyte into an A.I. power broker.

They have reached an enormous deal with the United Arab Emirates to deliver hundreds of thousands of today’s most advanced chips from Nvidia annually to build one of the world’s largest data center hubs, three people familiar with the talks said. The shipments would begin this year, with the vast majority of the chips going to U.S. cloud service providers and about 100,000 of them to G42, an Emirati A.I. firm.

The administration revealed the agreement on Thursday in an announcement unveiling a new A.I. campus in Abu Dhabi supported by 5 gigawatts of electrical power. It would be the largest such project outside the United States and help U.S. companies serve customers in Africa, Europe and Asia, the administration said. The details about the chips weren’t disclosed, and it’s not clear if they could still be subject to change.

As Mr. Trump traversed the region in recent days, the United States also struck multibillion-dollar agreements to sell advanced chips from Nvidia and AMD to Saudi Arabia. The United States and Saudi Arabia are also still in discussions on a larger contract for A.I. technology, five people familiar with the negotiations said.

The A.I. deals have caused people inside and outside the White House to wrestle with an unexpected question. Is the Trump administration, in its zeal to make deals in a region where Mr. Trump and his family have financial ties, outsourcing the industry of the future to the Middle East?

The question speaks to divisions over A.I. policy that are rippling through the Trump administration. The deals were negotiated in the Middle East by David Sacks, the administration’s A.I. czar, and Sriram Krishnan, its senior policy adviser for A.I., who are both longtime venture capitalists. Leading figures in the A.I. industry, like Sam Altman of OpenAI and Jensen Huang of Nvidia, have also been involved in talks that have continued on the sidelines of the president’s trip in recent days.