Trump administration eased export controls on NVIDIA AI chips and military equipment to the UAE, reversing prior restrictions in a controversial geopolitical move.
The Commerce Department on Friday moved toward easing export controls on the United Arab Emirates, including by announcing it will "favorably review" export license applications for MGX, the UAE-backed investment firm that used a stablecoin linked to President Donald Trump's family for its $2 billion investment in Binance. An unpublished version of a new 17-page rule viewable in the Federal Register includes a provision stating that Commerce's Bureau of Industry and Security will favorably review applications involving MGX semiconductors and servers bound for the UAE. The rule is scheduled to be officially published on Tuesday, July 14.
The broader rule also grants the UAE government, Abu Dhabi AI conglomerate G42, and its cloud subsidiary Core42 access to license exceptions for certain advanced-computing equipment. The Commerce Department said it "will significantly upgrade the status of the United Arab Emirates" under export regulations "in recognition of the UAE's status as a U.S. Major Defense Partner and its support in advancing U.S. national security interests, including Operation Epic Fury," the campaign against Iran.
Senator Elizabeth Warren, a Massachusetts Democrat and ranking member of the Senate Banking Committee, quickly blasted the new rule as "corrupt." MGX used USD1, a stablecoin issued by the Trump family-affiliated World Liberty Financial, to complete its Binance investment—the world's largest crypto exchange by daily volume. The transaction provided major business for the newly launched USD1 and raised questions about whether Trump's financial interests could influence U.S. policy toward the UAE.
Warren noted that "the UAE royal behind G42 and MGX secretly bought a 49% stake in the Trump crypto company, World Liberty Financial," and cited the president's recent financial disclosure showing he made a $263 million windfall related to this deal, part of $1.4 billion he earned from crypto ventures last year. "Now, Trump's Commerce Department is giving G42 license-free access to advanced AI chips and promising favorable treatment for MGX, despite reported concerns about the diversion of sensitive technology to China and other national security risks," she said. Warren called for Commerce Secretary Howard Lutnick and BIS Under Secretary Jeffrey Kessler to testify before Congress "to explain this corrupt deal and how it could put our national security at risk." Kessler is already scheduled to testify next week before the House Committee on Foreign Affairs.
MGX is also a major backer of AI companies OpenAI and Anthropic. Amazon, Apple, Google, Meta, Microsoft, OpenAI, Oracle and xAI would receive streamlined treatment for some controlled equipment used in UAE operations and data center projects under the new rule. The changes could accelerate chip sales by reducing the need for separate export licenses, though they do not eliminate restrictions designed to prevent sensitive technology from reaching prohibited users or countries such as China. The rule also eases controls on some military, satellite and spacecraft-related exports.
There is no evidence in the rule that the UAE's financial dealings with World Liberty influenced Commerce's decision.