Microsoft announced Monday that it has export licenses to ship Nvidia chips to the United Arab Emirates to help boost its artificial intelligence goals.

In 2023, Microsoft partnered with an Abu Dhabi-based company called Group42 to grow its UAE data center presence. The tech giant disclosed today that it will have invested more than $7.3 billion in the partnership by the end of the year. Over half the sum was allocated to capital expenditures, a line item that includes data center infrastructure.

Microsoft has secured advanced chip export licenses for the UAE: 60,000+ NVIDIA AI GPUs will be sent in Microsoft's $15B investment in the UAE.

Microsoft just got permission from the U.S. Commerce Department to ship over 60,000 Nvidia AI chips to the United Arab Emirates.

As AI spending grows, so will the need for semiconductor capacity from TSMC. This should enable it to keep increasing revenue rapidly -- 41% year over year last quarter -- and perhaps eclipse $200 billion in sales in 2027. With a 50% operating margin, that would equate to $100 billion in bottom-line operating earnings.

The AWS partnership is OpenAI's first major cloud computing deal since it struck a new agreement with Microsoft, which gave it more flexibility.