Senator Elizabeth Warren has criticized the Trump administration after the US Commerce Department relaxed export controls on advanced AI chips for the United Arab Emirates (UAE). The Massachusetts Democrat described the move as a ‘corrupt’ arrangement and urged Congress to investigate whether the policy benefits President Donald Trump's business interests while exposing the US to national security risks.

Commerce Department Eases Licensing Rules

A new rule offering special treatment to export license applications involving the UAE investment company MGX has been unveiled by the BIS at the Commerce Department. The rule also allows exceptions to the licenses for advanced computing devices provided to the UAE-based AI company G42 and its cloud subsidiary, Core42.

The updated policy will also make it easier for US tech giants such as Amazon, Microsoft, Alphabet, Meta, Apple, Oracle, and xAI to build AI projects in the UAE. The rule comes into effect on July 14. 

Warren argued that the export policy raises serious ethical questions as MGX reportedly used the Trump family-linked stablecoin USD1 to finance its $2 billion investment in cryptocurrency exchange Binance.

Security Concerns Remain in Focus

According to Warren, “President Trump earned about $263 million from the transaction as part of nearly $1.4 billion in crypto-related income over the past year.” She said the administration should explain why it eased export restrictions despite previous concerns over technology diversion and possible conflicts of interest. Warren also reiterated that Congress should not approve cryptocurrency legislation that allows presidents or their families to profit from crypto ventures while holding office.

The senator has requested Commerce Secretary Howard Lutnick and Under Secretary Jeffrey Kessler to testify before the Senate Banking Committee. The senator hopes that the government will explain the reasons behind its move to provide UAE companies with easier access to advanced AI chips.

The new move has brought focus on G42, an AI company of the UAE that is owned by Sheikh Tahnoon bin Zayed Al Nahyan. Several lawmakers had previously raised doubts over whether the company had any affiliations that might put advanced US semiconductor technology at risk to Chinese programs.

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