Microsoft has received regulatory approval to send NVIDIA AI chips to the UAE, allowing it to increase AI capacity there by fourfold.

In 2023, Microsoft partnered with an Abu Dhabi-based company called Group42 to grow its UAE data center presence. The tech giant disclosed today that it will have invested more than $7.3 billion in the partnership by the end of the year. Over half the sum was allocated to capital expenditures, a line item that includes data center infrastructure.

For the first time, the U.S. has granted Microsoft a license to export Nvidia chips to the UAE — a move that positions the country as both a proving ground for U.S. export-control diplomacy and a regional anchor of American AI influence.

Microsoft ( MSFT) said on Monday that it will invest $15.2B in the United Arab Emirates from the years 2023 through 2029 as part of its efforts to grow its business in the region. The tech giant also said it received an export license to send advanced artificial intelligence GPUs to the country, including those from Nvidia ( NVDA ).

The tech giant said it is the first company granted an export license by the Trump administration’s Commerce Department to ship AI chips to the U.A.E.

IREN stock soared on Monday after announcing a nearly $10 billion deal with Microsoft to provide access to Nvidia chips.