The investment reinforces concerns about foreign influence, which originally stemmed from a major investment by MGX, a state-backed investment firm in the United Arab Emirates, which increased the market capitalization of the Trump family stablecoin by almost $2 billion overnight.
This is where it gets interesting. Months after the deal, the Trump administration made policy decisions that benefited the UAE, according to the letter. In May 2025, he approved a $1.4 billion arms sale to the country, despite concerns in Congress about the flow of weapons to armed groups in Sudan, where more than 150,000 people have died.
That same month, Treasury created a “known investor pilot” program to streamline investment approvals through CFIUS, an expedited process that the UAE had lobbied for.
The Commerce Department also rolled back Biden-era chip export restrictions, allowing the UAE to receive up to triple or quadruple the number of advanced chips it could have previously imported. He authorized G42, a UAE AI company chaired by Sheikh Tahnoon bin Zayed Al Nahyan, to receive 35,000 Nvidia Blackwell chips. The deal was worth more than $1 billion.
But U.S. intelligence reportedly caught G42 supplying U.S. technology used to boost China’s missile capabilities. Although G42 has pledged to divest its Chinese holdings, reports suggest the company has attempted to conceal its ties to Beijing by transferring its business holdings in China to a new investment company.
