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The Commerce Department rule, which runs roughly 5,000 words, extends license-free access to the highest-end US AI computer chips to G42, its cloud computing division Core42 and eight American companies operating in the UAE, EnterpriseAM reported. A 17-word clause inserted midway through the document has raised questions among export-control specialists about whether G42 must restructure as a US entity to maintain the arrangement past its expiration. The rule specifically notes the UAE’s cooperation with the United States during its ongoing conflict with Iran, a factor that contributed to the country’s reclassification into a more favorable export category in July 2026.
EnterpriseAM said the provision will lapse in April 2027 unless G42 and Core42 become US companies or obtain fresh authorization from the Commerce Department. The publication noted that the clause has left observers uncertain about the exact meaning of becoming a US company, which could range from incorporating in a US state to selling a majority stake or creating a US-controlled subsidiary with its own board. Bloomberg reported in September that G42 executives had conducted exploratory talks about selling a majority interest to US firms, though no specific partners were identified at the time.
G42 already counts Microsoft among its investors alongside US private equity firm Silver Lake and Abu Dhabi’s Mubadala sovereign wealth fund, according to multiple reports including one from The Next Web in September. The company issued a statement in response to questions about the rule that underscored its existing American connections. “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,” G42 said in the statement carried by EnterpriseAM.
The statement continued by affirming that the company would remain in full compliance with applicable rules while declining to address the regulatory clause in detail. “We will continue to operate in full compliance with all applicable requirements,” it added. “We have no further comment on specific regulatory or corporate considerations at this stage.”
A separate EnterpriseAM article published October 29 highlighted how US midterm election dynamics could affect future Gulf AI initiatives, with Senate Intelligence Committee Ranking Member Mark Warner criticizing the transactional nature of recent Trump administration agreements. Warner told the outlet that any model for technology collaboration with Gulf partners must prioritize technology security, protections against misuse for surveillance and concrete benefits to the United States. G42 had previously severed ties with China’s Huawei and permitted American oversight of its data centers, steps that paved the way for expanded US chip approvals including access to up to 35,000 Nvidia units in late 2025.
