06:22 AM EDT, 07/17/2025 (MT Newswires) -- Some US administration officials are delaying a chip deal that would allow the UAE to purchase Nvidia's ( NVDA ) advanced AI chips, the Wall Street Journal reported late Wednesday, citing people familiar with the matter.

Talks have stalled due to concerns that China could access the chips through UAE-based G42, which was originally expected to receive 20% of the supply.

Although both countries support the agreement, few meetings have taken place since May, and the US export policy remains unclear following recent rule changes, the report said.

Commerce Secretary Howard Lutnick remains optimistic that the deal will go through as planned, but the Commerce Department does not currently intend to approve exports to G42, the report said.

Nvidia ( NVDA ) chief executive officer Jensen Huang recently emphasized the importance of the deal to President Donald Trump, while White House AI adviser David Sacks warned that slowing exports could benefit global competitors, the report added.

The White House did not immediately respond to MT Newswires' request for comment.

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