Nvidia (NVDA) will be allowed to ship its artificial intelligence chips to the United Arab Emirates under a draft agreement between the US and the UAE, Reuters reported Thursday, citing two sources familiar with the deal.

Under the proposed agreement, the UAE will be allowed to import 500,000 of Nvidia's AI chips a year, starting in 2025, with 100,000 going to UAE tech firm G42 and the rest to be divided among US companies planning to build data centers in the UAE, such as Microsoft (MSFT) and Oracle (ORCL), Reuters reported.

The sources told Reuters the deal is proposed to last through 2027 and possibly until 2030, although it could also face political opposition in the US.

Nvidia did not immediately respond to a request for comment from MT Newswires.

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