Policy and Profit: Examining the Intersection of U.S. Chip Exports and UAE Crypto Investments

A series of multibillion-dollar transactions between the Trump administration, its allies, and the United Arab Emirates have raised significant ethical and national security questions, blurring the lines between U.S. policy and private financial gain¹. A lucrative transaction involving the Trump family’s cryptocurrency firm and an agreement giving the Emiratis access to advanced AI chips were connected in ways that have not been previously reported. This situation presents a case study in the convergence of geopolitical strategy, technology control, and potential conflicts of interest.

UAE Access to Advanced AI Chips

The Trump administration agreed to grant the UAE access to hundreds of thousands of advanced American-made AI chips, primarily from Nvidia. These components are critical for artificial intelligence development and are subject to strict export controls due to national security fears, particularly regarding their potential diversion to China¹. Key figures in this arrangement included Steve Witkoff, Trump’s Middle East envoy and longtime friend, who advocated for the chip deal. David Sacks, appointed as Trump’s “AI and Crypto Czar,” was a key negotiator arguing for unlimited exports and received a White House ethics waiver due to his past investments in the tech sector and funds with ties to Gulf states¹. U.S. intelligence officials and some within the administration feared the chips could be diverted to China, given the UAE’s history of military exercises with the nation and the past partnerships of the Abu Dhabi-based AI company G42, the intended recipient, with Chinese tech firms.

UAE Investment in Trump-Linked Crypto Venture

Concurrently with the chip negotiations, UAE state-backed investment firms made massive investments into World Liberty Financial (WLF), a cryptocurrency company co-founded by the Trump and Witkoff families¹. In May 2025, Abu Dhabi’s MGX, chaired by Sheikh Tahnoon bin Zayed Al Nahyan, used WLF’s “USD1” stablecoin to complete a historic $2 billion investment into the crypto exchange Binance. This transaction provided WLF with a substantial asset base to generate revenue. The following month, the UAE-based Aqua 1 Foundation purchased $100 million of WLF’s “WLFI” governance tokens, becoming its largest publicly known investor. A direct personnel link between the two deals was established through Fiacc Larkin, a G42 executive who simultaneously held a role as “chief strategic adviser” to World Liberty Financial.

Internal White House Dynamics and National Security

The push for the chip export deal was not without internal opposition. A faction within the White House, led by National Security Council official David Feith, pushed an “America First” plan to restrict foreign access to these critical technologies. This internal conflict came to a head in April 2025 when Feith and five other officials were fired following a meeting between Trump and conservative agitator Laura Loomer, which reportedly shifted internal power dynamics in favor of finalizing the agreement with the UAE¹. The Biden administration had previously limited chip access to the UAE for the very reasons that caused concern among some Trump administration officials, highlighting the significant policy reversal.

Official Responses and Ethical Considerations

The White House has publicly denied any connection between the two deals, characterizing the crypto transaction as “totally unrelated to any government business.”¹ A spokeswoman stated that Steve Witkoff was “still in the process of divesting” from WLF and was working with ethics officials for compliance. The administration also stated that David Sacks “had no financial interest in the U.A.E. chip deal” and participated solely to advance administration policy. A spokesman for G42 said the company was “grounded in integrity” and committed to U.S. coordination and safeguards. Ethics lawyers note that the situation appears to violate norms prohibiting officials from participating in matters that directly benefit their families.

Broader Geopolitical and Policy Implications

The partnership represents a strategic pivot in U.S.-Gulf relations, where “compute, not crude” is becoming a central pillar. The U.S. gains a partner with abundant energy for powering data centers, which is seen as a way to maintain AI dominance over China, while the UAE acquires the technology necessary to become a global AI hub and extend its geopolitical influence¹. The Trump administration is simultaneously moving to deregulate the crypto industry, a policy shift that directly benefits the President’s family ventures. This series of events has prompted significant political backlash, with Democratic lawmakers calling the situation “corruption” and “the biggest corruption scandal in the history of the American presidency.”

Relevance to Security Professionals

For security professionals, this case underscores the critical nature of technology export controls as a national security tool. The potential diversion of advanced AI chips to adversarial nations represents a tangible threat to technological superiority and requires robust supply chain monitoring and compliance verification mechanisms. The involvement of cryptocurrency in large-scale international transactions adds a layer of complexity for financial and threat intelligence analysts tracking the flow of funds, necessitating advanced blockchain analysis capabilities to ensure transparency and identify potential sanctions evasion.

Conclusion

The interconnected transactions between the U.S. administration and the UAE, involving advanced AI chips and cryptocurrency investments, present a complex narrative where policy decisions and private financial interests appear closely aligned. While official denials have been issued, the concurrent timing of the deals, the involvement of key individuals with dual roles, and the reversal of previous security-focused policy have raised serious questions. This situation highlights the ongoing challenges in managing technology exports, mitigating conflicts of interest at the highest levels of government, and the evolving role of cryptocurrency in global finance and geopolitics. The full implications for U.S. national security and ethical governance continue to be a subject of intense scrutiny and debate.