The Trump administration is in active talks to authorize the United Arab Emirates to import over a million Nvidia Corp’s most advanced artificial intelligence chips, in what would mark a sharp departure from existing Biden-era export controls, Bloomberg said in a report on Tuesday.

The prospective deal, which remains under negotiation, has drawn scrutiny in Washington over fears that American-made hardware could eventually end up in Chinese hands.

Citing people familiar with the discussions, Bloomberg said the proposed agreement would allow the UAE to import as many as 500,000 high-end AI chips annually from now through 2027.

These chips, identified as Nvidia’s H100s, represent the cutting edge in AI hardware.

Approximately one-fifth of the chips would be allocated to G42, Abu Dhabi’s leading AI company, with the remainder intended for use by US companies establishing data centers in the region.

Among those companies is OpenAI, which could soon announce a new Gulf-based data center initiative, said individuals close to the matter.

The arrangement, if finalised, would mark a fundamental shift in how Washington approaches AI hardware distribution to Middle Eastern partners.

A sharp divergence from existing chip export controls

The volume of chips potentially bound for the UAE under the deal significantly exceeds the thresholds allowed under export regulations imposed during President Joe Biden’s tenure.

Under that framework, a firm like G42 would have been permitted to acquire roughly a quarter of the capacity now being discussed.

The Biden administration’s chip export controls, particularly those targeting what is known as “AI diffusion,” were designed to limit the spread of sensitive AI capabilities, especially to countries with close ties to China.

G42, for instance, had been required to divest from Chinese tech giant Huawei to secure a $1.5 billion investment from Microsoft in 2023.

The Trump administration appears poised to dismantle those limits, framing the move as part of a broader strategy to counter China by strengthening technological alliances with Gulf states.

President Trump, who is currently touring the Middle East, is expected to visit the UAE after stops in Saudi Arabia and Qatar.

Officials say an announcement about the Nvidia deal could come during that leg of the trip.

UAE’s tech ambitions grow as concerns over China persist

Behind the scenes, White House AI adviser David Sacks has played a central role in shaping the policy discussions.

Sacks recently met with Sheikh Tahnoon bin Zayed Al Nahyan, the UAE’s national security adviser, who has been lobbying for increased access to US semiconductor technology.

The UAE has pledged to invest as much as $1.4 trillion in US technology, energy, and infrastructure, a move widely seen as an attempt to sweeten its bid for expanded access to Nvidia’s chips.

In a social media post after meeting Sheikh Tahnoon, Sacks warned that China is narrowing the technological gap.

“The country that builds its partner ecosystem the fastest is the one that will win this high-stakes competition,” he wrote, arguing that AI diplomacy is now crucial to preserving US leadership.

Still, the proposed deal has sparked backlash from lawmakers concerned about national security.

“Deals like this require scrutiny and verifiable guardrails,” said Representative John Moolenaar, a leading Republican on the House committee focused on US-China competition.

“We raised concerns about G42 last year for this very reason — and we need safeguards in place before more agreements move forward.”

Strategic stakes rise in race for AI leadership

If approved, the UAE agreement would not only cement the country’s status as a rising AI power but could also set a precedent for similar partnerships in the region.

The Trump administration is reportedly exploring a comparable agreement with Saudi Arabia, suggesting a broader realignment of US technology export policy to the Gulf.

Whether these efforts succeed will depend heavily on Washington’s ability to implement safeguards that prevent inadvertent transfers of sensitive technology to rivals such as China.

For now, the Trump team is betting that closer cooperation with trusted partners in the Middle East will deliver both strategic and economic dividends.

The White House, Nvidia, G42, OpenAI, and the UAE Embassy declined to comment on the specifics of the proposed deal.

Nvidia expands AI footprint in Saudi Arabia

In a separate development underscoring the region’s growing AI ambitions, Nvidia on Tuesday announced it would sell over 18,000 of its newly unveiled Blackwell chips to Humain, a Saudi AI company.

The deal coincided with the Saudi-US Investment Forum in Riyadh, where Nvidia CEO Jensen Huang said the chips would be deployed in a 500 megawatt data center.

The Blackwell GB300 chip, announced earlier this year, is considered among the most powerful AI accelerators currently available.

The sale highlights how the Middle East, backed by sovereign wealth and deepening ties to US firms, is rapidly becoming a hub for next-generation computing.

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President Donald Trump launched a renewed salvo against the Federal Reserve on Tuesday, asserting the central bank is lagging in its response to what he characterized as a significantly cooling inflationary environment, particularly after April’s inflation figures came in softer than anticipated.

In a direct and pointed message on his Truth Social platform, Trump voiced his impatience with the current monetary policy stance.

“No Inflation, and Prices of Gasoline, Energy, Groceries, and practically everything else, are DOWN!!! THE FED must lower the RATE, like Europe and China have done. What is wrong with Too Late Powell?” he wrote, directly referencing Fed Chairman Jerome Powell.

This marks the latest in a consistent pattern of public critiques from the president aimed at the Fed chief, often linking economic performance directly to the central bank’s interest rate decisions.

Inflation’s slowdown: a nuanced picture

The catalyst for Trump’s remarks was Tuesday’s consumer price index (CPI) report, which indicated a year-over-year price increase of 2.3% in April.

This figure represents a slight deceleration from March’s 2.4% and marks the slowest pace of inflation recorded since 2021.

However, while this data points to a moderation in price pressures, it still diverges from the “no inflation” scenario painted by the president.

His persistent calls for interest rate reductions have become a familiar refrain, yet the central bank did not accommodate this request during its most recent policy meeting last week.

The Fed’s cautious stance amid tariff headwinds

The Federal Reserve, operating under its mandate of price stability and maximum employment, maintained its benchmark interest rate in a range of 4.25%-4.50% at its last gathering.

The decision, as noted by the Fed, was influenced by an economic landscape where tariffs are “creating considerable inflation and labor uncertainty.”

This independent stance contrasts sharply with the president’s demands for more accommodative monetary policy.

Despite the somewhat encouraging April inflation numbers, Wall Street forecasters remain watchful, warning that inflationary pressures could pick up again as soon as next month.

A key factor in this outlook is the anticipated lag before the full impact of tariffs is reflected in consumer price data.

Adding to this cautionary note, Fed Governor Adriana Kugler, in a speech delivered on Monday, outlined that even a recent trade truce between the US and China might not fully quell price growth.

Kugler highlighted that, according to her discussions, “most executives still plan to pass on tariff costs to consumers,” suggesting that underlying inflationary forces linked to trade policy may yet exert upward pressure on prices.

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Nvidia Corp. came within striking distance of overtaking Apple Inc. as the world’s second most valuable company on Tuesday, as its stock rallied on optimism around chip sales to Saudi Arabia and artificial intelligence infrastructure deals.

The company’s shares jumped 5.6% to close at $129.93, lifting its market capitalisation to $3.17 trillion — just shy of Apple’s $3.18 trillion.

Nvidia’s gains on Tuesday bring its total rise since April to 38%, outpacing Apple’s 23% climb in the same period.

“At this pace, Nvidia may soon overtake Apple as the second-largest company in the world,” says Jessica Amir, market strategist at Moomoo Australia.

The rally has also propelled the wealth of Nvidia’s co-founder and CEO Jensen Huang, whose net worth surged to around $120 billion — up from $80 billion a year ago.

That puts him just outside the top ten in Forbes’ real-time billionaires list, a reflection of how closely his fortune is tied to Nvidia’s explosive growth in AI.

Huang has steered Nvidia to the centre of the global AI boom, capitalising on the insatiable demand for high-performance chips used to train large language models and other generative AI tools.

Saudi deal signals new growth frontier

Investor optimism was further boosted by Nvidia’s announcement of a new partnership with Saudi Arabia’s Humain, an AI startup backed by the kingdom’s sovereign wealth fund.

Speaking at the Saudi-US Investment Forum in Riyadh, Huang confirmed that Nvidia would supply the chips for a 500 megawatt data centre project that will be central to Saudi Arabia’s AI ambitions.

The project will begin with 18,000 of Nvidia’s GB300 Grace Blackwell Superchips, with hundreds of thousands more to follow over the next five years.

The chips will be connected using Nvidia’s InfiniBand networking technology, reflecting the scale and sophistication of the infrastructure being built in the Gulf region.

The development aligns with the Trump administration’s broader strategy of expanding semiconductor access in the Middle East.

A potential deal to allow the UAE to import over a million Nvidia chips is also under consideration, which analysts believe could add further upside to the company’s stock.

“Nvidia needs just another US$11 billion more in market capitalisation to reach the goal,” Amir said.

“Then it could tap Microsoft on the shoulder to reclaim the No.1 spot. There’s more upside for Nvidia as the US is weighing a deal to allow the United Arab Emirates to import more than one million Nvidia chips, while major S&P 500 tech companies have reaffirmed they’re also buying more,” she added.

Earnings on deck, China ban still a drag

Despite the rally, Nvidia still faces headwinds.

Analysts at UBS said they expect the company to beat revenue expectations in its upcoming earnings report on May 28, though earnings per share might slightly disappoint.

UBS strategist Timothy Arcuri trimmed his price target to $175 from $180, citing continued restrictions on Nvidia’s most advanced chips in China.

To mitigate the impact, Nvidia is reportedly preparing a downgraded version of its H20 chip for the Chinese market, though the company has declined to comment.

Nonetheless, momentum is clearly with Nvidia.

As long as AI remains at the forefront of global tech priorities, Nvidia’s climb appears far from over.

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Burberry is set to cut as many as 1,700 jobs worldwide as part of a wider cost-cutting effort, as the British fashion house grapples with a challenging luxury retail environment.

The company said Wednesday it aims to save an additional £60 million ($80 million) over the next two years, with the layoffs representing roughly 18% of its global workforce.

Burberry currently employs more than 9,000 people.

The announcement came alongside the release of its full-year results, which showed adjusted operating profit of £26 million—well above analysts’ expectations of £4.7 million.

Still, the figure marked a steep decline from the £418 million reported the previous year, underscoring the scale of the challenge CEO Joshua Schulman faces as he attempts to steer the brand back to growth.

Early signs of improvement amid tough market

Burberry reported a 6% decline in comparable sales for the fourth quarter ending March 29, a slight improvement over analyst forecasts for a 7% fall.

The company said that brand sentiment was improving, especially in outerwear and scarves, even as overall customer demand remained weak.

Schulman, who took the helm in July last year, said the brand is still in the early stages of its revamp but expressed confidence that ongoing initiatives will begin to bear fruit as the year progresses.

“We expect to see the impact of our actions build as the year progresses,” Burberry noted in its earnings statement.

Navigating a shifting luxury landscape

Burberry’s efforts come at a time when aspirational consumers are pulling back on discretionary spending due to inflation and global uncertainty.

The company has also been hit by reduced demand for entry-level luxury items and growing concern over potential trade tariffs under a second Donald Trump presidency.

The brand’s iconic trench coats, which retail for around £2,000, remain central to its strategy, as Schulman works to reassert Burberry’s high-end positioning.

However, the company faces an uphill battle after decades of brand dilution and inconsistent leadership—having cycled through four CEOs in the past decade.

In recent years, Burberry’s image has shifted, with its once-exclusive patterns becoming associated with mass appeal, particularly in the UK.

Its relegation from the FTSE 100 index last September symbolised the struggles of a once-dominant player in the luxury space.

Accelerated savings programme under way

As part of Schulman’s turnaround strategy, Burberry initiated a £40 million cost-cutting programme in November 2024.

The company now expects £24 million of those savings to materialise in the current fiscal year, with a further £60 million targeted by FY27.

Despite recent turbulence, Schulman remains optimistic. “The actions we’ve taken in the last 90 days reflect our commitment to reshaping Burberry for long-term success,” he said.

Shares in Burberry have fallen 16% so far this year, reflecting investor concerns about sustained weak demand and execution risk around the turnaround plan.

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Romania’s 2025 presidential election is not a normal election. This election is a rerun following the annulment of the December 2024 election due to Russian interference.  

And the story keeps getting more intense. Just a week ago, the far-right nationalist candidate won the first round, the prime minister resigned and Romania’s national currency dropped to its lowest level in history. 

By the end of this week, Romanians must choose between two men with completely different answers to the same question: what should Romania stand for?

This runoff isn’t about personalities. It’s about Europe, NATO, Ukraine, and the markets. It’s about whether Romania remains a stable ally or steps into the unknown.

Why this election is different

Romania’s 2025 presidential election is unlike any before. For the first time in the post-communist era, neither candidate comes from the country’s traditional ruling parties.

The frontrunner, George Simion, leads the ultranationalist AUR party.

He won 41% in the first round on May 4, drawing strong support from rural voters and the Romanian diaspora. 

His opponent, Nicușor Dan, is an independent pro-European reformer and the mayor of Bucharest. He barely made it into the runoff with 21%.

This wasn’t just an election. It triggered a full political breakdown.

Romania’s ruling coalition, made up of the Social Democrats, Liberals, and the ethnic Hungarian UDMR, collapsed after their candidate Crin Antonescu failed to reach the second round. Prime Minister Marcel Ciolacu resigned the same evening.

With no party in control and a president who can shape foreign policy, defence, and veto EU decisions, the stakes are far higher than usual.

Who are the candidates?

George Simion is 38. He started as an activist, once banned from entering Ukraine and Moldova, but now calls himself the Romanian version of Donald Trump.

He wears MAGA hats, campaigns on Romanian sovereignty, and says he wants “Melonisation”, a reference to Italy’s Giorgia Meloni, who moved from populist firebrand to prime minister.

Simion opposes sending weapons to Ukraine. He says Romania should focus on its own needs. In the recent televised debate, he argued Romania should be “neutral” and that the EU should depend on NATO for protection.

He also said Romania should be compensated for its help to Ukraine so far, including the donation of a Patriot missile system.

Nicușor Dan, 55, is a mathematician with a doctorate from the Sorbonne.

He made a name for himself fighting corruption in real estate before becoming mayor of Bucharest. Dan supports Ukraine and the EU’s plan to increase joint military spending. He says Europe needs to prepare in case the US withdraws its support.

He has no major party behind him but has attracted support from the Liberals and UDMR. The Social Democrats have stayed neutral.

What’s really at stake?

Romania is a key NATO member on the Black Sea, sharing a border with Ukraine. It has played a critical role in exporting Ukrainian grain and training Ukrainian pilots.

Simion’s election could reverse that. He has said he would veto any future EU plans to send arms to Ukraine. 

Political analysts believe this would isolate Romania, weaken support for Ukraine, and possibly shift the balance inside the EU.

Romania already has the EU’s highest budget deficit, at around 9% of GDP. Investors are nervous.

After Simion’s first-round win, the leu dropped to historic lows. The central bank had to intervene with €1 billion to stabilize the currency.

Dan says Simion’s policies are dangerous for the economy. He points to Simion’s promises to nationalize key industries, cut taxes, and build subsidized housing without clear funding plans.

If elected, Dan says he will reduce spending in state enterprises, crack down on tax evasion, and work to unlock frozen EU funds.

Where do voters stand now?

Recent polls show the race is tied. A survey by AtlasIntel has both candidates at 48.2%. Another, by CURS, gives Simion a slight edge at 52%.

But there’s a wildcard. Nearly one million Romanians abroad voted in the first round.

Over 60% supported Simion. Dan’s support among the diaspora is strongest in the US and Canada, but those regions account for fewer votes.

Simion’s appeal is built on frustration with the old political class. His supporters say Romania has been ignored by Brussels and needs to put its own interests first. He connects with voters in villages, small towns, and religious communities.

Dan’s base is in the cities: educated, middle-class, and pro-European.

His path to victory depends on winning over millions of voters who backed other candidates in the first round and convincing them to turn out.

Could Romania shift Europe’s balance?

This election isn’t happening in a vacuum. If Simion wins, he is likely to join forces with Hungary’s Viktor Orbán and Slovakia’s Robert Fico to slow or block EU decisions on Ukraine, defense, and rule of law.

Kremlin-linked ideologue Alexandr Dugin even called Simion’s rise a “chance for Russia”.

Simion’s ties to Călin Georgescu, the pro-Russia figure disqualified in 2024, have only added to fears in Brussels and Washington. According to reports, Simion wants to appoint Călin as Prime Minister.

At the same time, Simion is trying to soften his image. He’s promised to work with NATO and reassured investors that he supports market reforms. Whether that’s genuine or just a campaign tactic remains unclear.

Dan, meanwhile, presents himself as the steady choice. He says Romania must prove it’s a reliable partner to the EU and NATO. He argues that the country’s security, economy, and global credibility depend on it.

On May 18, the country will pick between two clear and opposite futures. One looks toward Brussels, the other away from it.

Both men promise change. But only one has a vision for Romania as part of the European mainstream. The other is asking voters to take a leap into the unknown.

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