Nvidia faces delays in a deal to export artificial intelligence chips to the United Arab Emirates, a deal worth billions of dollars. According to media reports on October 2, Nvidia CEO Jensen Huang is frustrated by the slow progress of the transaction.
The agreement was announced in May,The UAE has pledged to invest at least $1 billion in the United States by the end of the year in exchange for Nvidia chips worth at least $1 billion.After months of negotiations, the investment has yet to materialize, according to media reports citing people familiar with the matter.The investment in the agreement has yet to be realized, which also means that the conclusion of the transaction faces great uncertainty.
Approval from the U.S. Commerce Department, which must allow Nvidia and other related companies to export chips to the UAE, is critical to the deal. It can be said thatThe deal's future lies largely in the hands of U.S. Commerce Secretary Howard Lutnick
According to media reports citing people familiar with the matter, Lutnick has urged the UAE to complete its investment in the United States before his ministry approves the delivery of chips, but protracted negotiations have slowed down the progress of the deal. According to media reports citing people familiar with the matter,Huang and several Nvidia executives have privately complained to other government officials about Lutnick's tactics and slow progress.A senior administration official said Lutnick did not stand in the way of the deal, but other administration officials believed he slowed it down.
The UAE is moving forward with its agreement to exchange Emirati investments in the United States for billions of dollars worth of Nvidia chips at a 1:1 ratio, a senior government official said. Others said the UAE would have to pay for the chips separately.
In response, an Nvidia executive said Huang and others did not complain and said the company was not concerned about how the deal was handled.