US Export Control Rule Sets 2027 Expiry for G42 AI Chip Access

A roughly 5,000-word rule issued by the US Department of Commerce grants license-free access to advanced artificial intelligence computing chips for UAE sovereign-backed AI firm G42, its cloud subsidiary Core42, and eight US companies operating in the UAE, EnterpriseAM reported. Outside these approved entities, US exporters continue to require licenses to export high-end AI semiconductors to any recipient in the UAE.

The Commerce Department regulation contains a 17-word clause specifying that G42 and Core42's license-free authorization will expire in April 2027 unless the entities become US companies or receive renewed regulatory approval, according to the report. Trade experts consulted by the outlet noted that the operational definition of becoming a US company remains undefined, raising questions over whether it entails corporate re-domiciliation, majority equity acquisitions, or corporate firewalls.

In September, Bloomberg reported that G42 held preliminary discussions regarding potential transactions involving a majority sale, though specific counterparties were not disclosed. G42's current institutional investors already include US software corporation Microsoft and private equity firm Silver Lake.

In an official statement to EnterpriseAM, G42 said: "We already maintain substantial ties to the United States through our partnerships, US shareholders, and US-based entities, and we continuously assess opportunities that support our long-term objectives. We will continue to operate in full compliance with all applicable requirements. We have no further comment on specific regulatory or corporate considerations at this stage". The export control division of the US Commerce Department did not provide a comment.

According to EnterpriseAM's review of the regulatory text, the Commerce Department's provision also cited the UAE's geopolitical cooperation during the ongoing US conflict with Iran. Policy analysts noted the April 2027 renewal deadline provides US authorities with an exit mechanism should technology diversion concerns emerge, including the potential transfer of sensitive AI capabilities to China.