Warren probes Commerce on UAE AI chip reclassification

Sen. Elizabeth Warren sent a letter to Commerce Secretary Howard Lutnick requesting documents and explanations for the department’s change placing the United Arab Emirates in Country Group A:5, a classification that expands access to license-free exports including advanced semiconductors and related servers.

Warren cited reports of two transactions: a $500 million investment in World Liberty Financial by an Abu Dhabi-backed entity associated with Sheikh Tahnoon bin Zayed Al Nahyan, and a separate UAE-linked company’s $2 billion settlement involving Binance that reportedly used World Liberty’s USD1 stablecoin.

The Commerce Department also indicated it would “favorably review” license applications for chips and servers submitted by MGX, a UAE-linked entity referenced in its guidance. The reclassification reduces the number of items that require export licenses and can speed shipments of servers and advanced AI chips.

In the letter, Warren asked for communications between the Commerce Department and the White House, internal memoranda, legal analyses and records explaining the legal basis and criteria used for the UAE classification and for the favorable review of MGX applications. She requested a timeline for the decisions and any meeting records with entities tied to the reported investments.

Warren wrote: “The Department’s actions raise significant questions about the potential influence the President’s cryptocurrency business interests may be having on the agency’s operations and our national security.”

The inquiry follows earlier congressional scrutiny. In June, a group of senators requested hearings into the reported $500 million transaction involving World Liberty Financial. Lawmakers have also raised questions about a presidential pardon granted to the former Binance chief executive.

The Commerce Department has not provided a detailed public explanation beyond saying the change reflects policy and regulatory considerations. The records Warren requested will inform lawmakers’ review of whether national security factors and normal review processes were applied in the decisions.