Senate Democrats warn against AI chip deals with Gulf states

The appeal comes after President Donald Trump’s recent visit to the Gulf, during which he announced plans for American companies to supply tens of thousands of high-end AI chips to the region.

 US President Donald Trump gestures, while he boards Air Force One, in Abu Dhabi, United Arab Emirates, May 16, 2025. (photo credit:  REUTERS/Brian Snyder)
US President Donald Trump gestures, while he boards Air Force One, in Abu Dhabi, United Arab Emirates, May 16, 2025.
(photo credit: REUTERS/Brian Snyder)

A group of leading Senate Democrats is urging the Trump administration to reassess recent artificial intelligence agreements with Saudi Arabia and the United Arab Emirates, arguing the deals could jeopardize national security and restrict access to critical technology for US companies.

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The appeal comes after President Donald Trump’s recent visit to the Gulf, during which he announced plans for American companies, including Nvidia and Advanced Micro Devices, to supply tens of thousands of high-end AI chips to the region.

The lawmakers, led by Sens. Elizabeth Warren and Chuck Schumer, warned in a letter Monday that the agreements “amount to a breathtaking rollback of export control restrictions” and risk transferring sensitive technology to China and Russia.

“At a time when many US companies need to wait years to acquire cutting-edge AI hardware, we find it deeply troubling that the Trump administration is prioritizing making our latest technology available to Saudi Arabia and the UAE,” they wrote.

 Syrian President Ahmed al-Sharaa meets with U.S. President Donald Trump and Saudi Crown Prince Mohammed Bin Salman in Riyadh, Saudi Arabia, in this handout released on May 14, 2025. Saudi Press Agency/Handout via REUTERS. (credit:  CDC/Handout via REUTERS THIS IMAGE HAS BEEN SUPPLIED BY A THIRD PARTY)
Syrian President Ahmed al-Sharaa meets with U.S. President Donald Trump and Saudi Crown Prince Mohammed Bin Salman in Riyadh, Saudi Arabia, in this handout released on May 14, 2025. Saudi Press Agency/Handout via REUTERS. (credit: CDC/Handout via REUTERS THIS IMAGE HAS BEEN SUPPLIED BY A THIRD PARTY)

Trump admin looking to repeal Biden-era export rules

The US has limited the sale of advanced chips to Saudi Arabia and the UAE since 2023 to prevent indirect access by China. But the Trump administration is moving to repeal Biden-era export rules and replace them with country-by-country negotiations. The Commerce and State Departments have defended the new approach, saying safeguards would be in place and that foreign data centers would require US-approved operators.

Nvidia responded to the criticism by claiming the deals will boost the American economy, generate tax revenue, and build AI infrastructure at home. “Data centers in the Middle East will be built securely on American technology,” the company said in response to the lawmakers’ letter.