The companies, G42, which is a state-run AI company based in Abu Dhabi, and Humain, which is a Saudi government-backed AI venture, have big data centre projects planned in their respective countries.

The announcement coincided with the first visit to the US by Saudi Arabian Crown Prince Mohammed bin Salman since 2018, and represents a big show of support by the US in the two countries’ AI aspirations.

“Both companies are receiving approvals to purchase the equivalent of up to 35,000 Nvidia Blackwell chips (GB300s),” the commerce department said in a statement. A total of 35,000 Blackwell’s are worth an estimated US$1 billion, but prices vary.

“The approvals are conditioned on both companies meeting rigorous security and reporting requirements,” the commerce department said.

Earlier in the day, Humain, a government-backed Saudi AI firm, said it planned to purchase 600,000 Nvidia AI chips.

Humain and Elon Musk’s xAI plan to jointly develop data centres in Saudi Arabia, including a 500 megawatt facility.

The UAE hailed the decision as “another milestone” in its partnership with the US.

“The authorisation follows sustained engagement between both governments and reflects the confidence that underpins our collaboration in advanced technology and national security,” UAE ambassador to the US Yousef Al Otaiba said in a statement.

G42, an Emirati state-linked tech firm that is driving the development of its artificial intelligence industry, intends to build one of the world’s largest data centre hubs in the UAE with US technology.

Technology giants Nvidia, OpenAI, Cisco and Oracle, along with Japan’s SoftBank, are working with G42 to build the first phase, known as Stargate UAE, set to go online in 2026.