US Commerce Rule Requires G42 to Become US Entity for Chip Access

A roughly 5,000-word U.S. Commerce Department rule granting license-free access to top-tier artificial intelligence computer chips for UAE AI champion G42, its cloud subsidiary Core42, and eight U.S. companies operating in the UAE includes a clause requiring G42 and Core42 to become U.S. companies or obtain renewed approval by April 2027, EnterpriseAM reported. Under the framework, U.S. exporters still require licenses to ship advanced AI chips to any other entity in the UAE.

According to the report, the condition is contained in a 17-word clause that has puzzled U.S. export-control experts, who stated they had not previously seen such language and questioned how it fits into national security export-control frameworks. The Commerce Department rule also explicitly referenced the UAE's cooperation during the ongoing U.S. war against Iran.

In a statement to EnterpriseAM, G42 said it already maintains substantial ties to the United States through partnerships, U.S. shareholders, and U.S.-based entities, and continuously evaluates opportunities supporting its long-term objectives. The company added that it will continue operating in full compliance with all applicable requirements, while declining further comment on specific regulatory or corporate considerations. The Commerce Department division overseeing export controls did not respond to a request for comment.

EnterpriseAM noted that G42's investors include Microsoft and U.S. private equity firm Silver Lake, while Bloomberg reported in September that G42 had held exploratory talks regarding selling a majority interest to a U.S. firm. The report observed that forfeiting G42's identity as a UAE company would affect the Gulf's ability to operate as an independent AI actor outside the two AI superpowers, the United States and China.