$5 Billion Equity Stake for Top US AI Chips: The Secret Deal Between UAE Royalty and the Trump Family

Original authors: Sam Kessler, Rebecca Ballhaus, Eliot Brown, Angus Berwick, The Wall Street Journal

Original compilation: Luffy, Foresight News

According to company documents and informed sources, four days before Donald Trump's presidential inauguration last year, a deputy of an Abu Dhabi royal family member secretly signed an agreement with the Trump family to acquire a 49% stake in their startup cryptocurrency venture for $500 million. The buyer paid half upfront, with $187 million transferred directly to Trump family entities.

This deal with World Liberty Financial, previously unreported, was signed by the president's son, Eric Trump. Documents show an additional at least $31 million was directed to entities linked to the family of the company's co-founder, Steve Witkoff, who had been appointed as the U.S. Middle East envoy just weeks earlier.

Sources say the investment was backed by Sheikh Tahnoon bin Zayed Al Nahyan, an Abu Dhabi royal who has been lobbying the U.S. for access to tightly controlled AI chips. Sometimes called the "spy chief," Tahnoon is the brother of the UAE president, the country's national security advisor, and also chairs its largest sovereign wealth fund. He controls a business empire exceeding $1.3 trillion, funded by personal wealth and state funds, spanning fish farms, AI, and surveillance technology, making him one of the world's most powerful individual investors.

The deal is unprecedented in U.S. political history: a foreign government official acquiring a large stake in the company of an incoming U.S. president.

During the Biden administration, Tahnoon's efforts to obtain AI hardware were largely blocked over concerns about sensitive technology flowing to China. U.S. intelligence officials and lawmakers were particularly alarmed by Tahnoon's AI company, G42, due to its close ties with sanctioned tech giant Huawei and other Chinese firms. Although G42 claimed it severed ties with China by late 2023, U.S. concerns persisted.

Trump's election victory reopened the door for Tahnoon. Sources say in the following months, Tahnoon met repeatedly with Trump, Witkoff, and other U.S. officials, including during a March visit to the White House where the sheikh expressed a strong desire to cooperate with the U.S. in areas like AI.

Two months after the March meeting, the Trump administration committed to providing the Gulf state with about 500,000 of the most advanced AI chips annually, enough to build one of the world's largest AI data center clusters. A previously reported framework agreement stipulated that about one-fifth of these chips would go to G42.

The deal is widely seen as a major victory for the UAE's ruling family, overcoming longstanding U.S. national security concerns and allowing the country to compete with the world's strongest economy at the AI frontier. Supporters praised it for attracting massive investment to the U.S. and helping establish global standards for American technology.

What was not previously known is that Tahnoon's envoy had already signed an agreement in January of that year to acquire a 49% stake in World Liberty Financial.

Trump visited Abu Dhabi in May last year

Tahnoon met with Trump and other U.S. officials at the White House in March last year

Details of the $500 Million Deal

Documents show that of the initial $250 million paid by Tahnoon-backed company Aryam Investment 1, $187 million went directly to Trump family entities DT Marks DEFI LLC and DT Marks SC LLC. Besides funds going to Witkoff family entities, another $31 million went to entities linked to co-founders Zak Folkman and Chase Herro. The Wall Street Journal has not determined the allocation of the remaining $250 million investment Aryam was due to pay by July 15, 2025.

The agreement made Aryam the largest shareholder in World Liberty Financial and the only known external investor besides its founders. Documents show the deal secured Aryam two seats on World Liberty Financial's five-member board; the two appointed Aryam executives also hold senior positions at Tahnoon's G42. Board members at the time included Eric Trump and Zach Witkoff (son of Steve Witkoff).

Since Trump's election victory, his real estate company has sought deals with foreign firms, and the president himself has accepted gifts from foreign governments, including a $400 million luxury jet from Qatar. But the World Liberty Financial deal is the only known case of a foreign government official purchasing a large stake in a Trump-affiliated company after his victory.

Disclosures on World Liberty Financial's website show the Trump family's stake dropped from 75% last year to 38%, indicating an external party bought shares, but the company never disclosed the buyer's identity.

Weeks before the U.S.-UAE chip deal was announced in May last year, World Liberty Financial CEO Zach Witkoff announced that Tahnoon-led investment firm MGX would use a stablecoin issued by World Liberty Financial to complete a $2 billion investment in cryptocurrency exchange Binance. The G42 executives joining World Liberty Financial's board also serve as directors at MGX, which is co-owned with G42.

Zach Witkoff promoted the MGX stablecoin partnership as an endorsement of World Liberty Financial's technology, without disclosing that MGX and World Liberty Financial are led by the same people.

World Liberty Financial spokesperson David Wachsman, regarding the Aryam investment, stated: "We made this deal because we firmly believe it is in the best interest of the company's continued growth. The idea that an American private company must adhere to special standards in fundraising that other similar companies do not is absurd and un-American."

He said President Trump and Steve Witkoff were not involved in the deal and have not been involved with World Liberty Financial since taking office, and Witkoff never held an operational role at the company. He added that the deal does not grant any party access to government decision-making or influence policy, "We comply with the exact same rules and regulations as every other company in our industry."

A person familiar with Tahnoon's investments said Tahnoon and his team conducted "months of evaluation" of World Liberty Financial's plans before investing, and he completed the investment in the company with "several co-investors," stating that no G42 funds were used. "At no point during due diligence or thereafter was this investment discussed with President Trump." The person said Tahnoon is a "significant investor" in cryptocurrency businesses.

White House spokesperson Anna Kelly said: "President Trump acts solely in the best interests of the American public." She said the president's assets are held in a trust managed by his children, "there is no conflict of interest," and stated that Witkoff is working to "advance President Trump's global peace goals."

White House Counsel David Warrington said: "The President is not involved in any business transactions that could implicate his constitutional duties."

He said Witkoff strictly adheres to government ethics rules, "He has not and will not participate in any official matters that could affect his financial interests," adding that Witkoff has "divested his interests related to World Liberty Financial."

A person close to Witkoff said the envoy was not involved in AI chip negotiations related to G42 but was briefed on the discussions.

A Trump Organization spokesperson said the company "takes its ethical obligations extremely seriously and is vigilant against conflicts of interest," and complies with all applicable laws.

The "Sheikh's" AI Chip Offensive

Trump posed with UAE President Mohammed during his visit to the UAE last May

After Trump's election victory, the UAE hoped for a more cooperative partner in the U.S.

For Tahnoon, obtaining U.S. chips was a top priority. Tasked by his brother to lead the UAE's push to become a global AI leader, his efforts were limited during the Biden administration over concerns chips could reach China. Although G42 said it severed ties with China by late 2023, other UAE entities within Tahnoon's business empire maintained close links with China.

Tahnoon sought approval for a massive additional supply of chips to build one of the world's largest AI data center clusters, requiring electricity equivalent to two Hoover Dams. Tahnoon and his deputies planned a full-court press to secure support from Trump's new administration.

Tahnoon already had business ties to the Trump family through Trump's son-in-law Jared Kushner, whose investment firm raised $1.5 billion in 2024 from a Tahnoon-backed company and Qatar.

Shortly after the victory, Trump appointed his longtime friend and golfing partner, Steve Witkoff, as Middle East envoy. Witkoff moved quickly, informing Biden administration officials he planned to reach out to his Middle East contacts and would visit the UAE, Qatar, Saudi Arabia, and Israel before the inauguration.

The early December 2024 trip to the UAE had both diplomatic and cryptocurrency purposes. Witkoff, who helped found World Liberty Financial in September, attended a cryptocurrency conference in Abu Dhabi, mingling with crypto giants and Eric Trump in a VIP room. Eric Trump declared to the UAE audience in a keynote speech: "Our family loves you."

As previously reported, Witkoff also met with Tahnoon as part of a series of regional talks covering issues including a Gaza ceasefire.

About a week after Witkoff's trip, two entities were registered within two days in Delaware and Abu Dhabi, disclosing no ownership information, both sharing the same name: Aryam Investment 1.

Company records reviewed by The Wall Street Journal show the Delaware Aryam was managed by executives from Tahnoon's G42; the Abu Dhabi entity shared a UAE office address with many other companies in the sheikh's business empire.

Weeks later, on January 16, 2025, Aryam representatives signed the $500 million deal with Trump and Witkoff's World Liberty Financial.

The Network of Interests Behind the Deal

At the time of the investment, World Liberty Financial had no products and had only raised $82 million by issuing a token called WLFI. Documents show Aryam's investment did not grant it rights to future WLFI token sales, meaning the Tahnoon-backed entity was excluded from the company's only revenue stream at the time.

The agreement for Aryam to acquire World Liberty Financial shares was signed by G42 General Counsel and Tahnoon's key advisor Martin Edelman and G42 CEO Peng Xiao. The deal also involved Tahnoon's personal investment firm, Royal Group, where Edelman also serves as an advisor.

Edelman and Xiao joined World Liberty Financial's board, but the company's website does not list them in its team.

The two played key roles in the UAE's lobbying of the Trump administration for chips.

G42's Head of Crypto and Blockchain, Fiacc Larkin, joined World Liberty Financial in January 2025 as Chief Strategy Advisor. His LinkedIn shows he also advises the Abu Dhabi Department of Economic Development, a government agency.

For years, G42 has been closely watched by Biden administration officials and Republican lawmakers. In 2024, Republican lawmakers called for an investigation into risks of China accessing U.S. sensitive technology through the company.

Peng Xiao, born in China, attended university in Washington, obtained U.S. citizenship, then renounced it to become a UAE citizen. He himself came under scrutiny during the Biden administration.

In 2024, a Republican committee chairman, in a letter to the Commerce Department requesting an investigation, said documents showed a "vast network" behind Peng Xiao consisting of UAE and Chinese companies.

Trump met with Mohammed during his visit last May. Peng Xiao, CEO of Tahnoon's AI company G42, was present (second from left)

G42 denied the allegations in the letter in a statement that year, saying the company had stopped working with Chinese firms.

Edelman is a prominent New York real estate lawyer who has cultivated connections in the UAE for decades. He advises the UAE royal family and serves as a director for several Tahnoon companies including G42 and MGX. He is also a longtime friend of Witkoff and publicly praised him after the election.

Company documents reviewed by The Wall Street Journal show the share purchase deal brought huge payouts to World Liberty Financial's founders, with Trump family, Witkoff family, and Folkman and Herro-linked entities receiving funds quickly. Trump's disclosure filings show he personally held a 70% stake in DT Marks DEFI as of late 2024, with the remaining 30% held by other family members; he did not disclose the ownership structure of DT Marks SC.

Ethical and Legal Controversies

Analysis of the investment deal details

Trump has long been criticized for retaining control of his private business empire and profiting from overseas while in office. During his first term, Democratic lawmakers sued Trump, alleging he violated the Constitution's "Emoluments Clause" by profiting from foreign governments patronizing his businesses. Trump called it a political witch hunt, the Justice Department argued Trump's profit-sharing didn't constitute an emolument, and the Supreme Court ultimately declined to hear the case.

In his second term, Trump's real estate holding company, the Trump Organization, said it would not enter into new contracts with foreign governments during the presidency but did not restrict new deals with foreign private companies, a loosening compared to the first term. The company said it would donate profits from identifiable foreign government officials at its hotels and other businesses to the U.S. Treasury. World Liberty Financial made no such pledge.

Legal experts say the deal with Aryam could violate the Emoluments Clause, and the close timing between the UAE chip deal and the World Liberty Financial transaction presents a significant conflict of interest.

Kathleen Clark, a law professor at Washington University and former Washington D.C. government ethics lawyer, said the clause is designed to prevent any government official from being "bought off by a foreign government." "This looks like a clear violation of the Foreign Emoluments Clause, and more importantly, it looks like a bribe."

She said the deal "should be a five-alarm fire for the selling of the federal government."

Ty Cobb, who served as a senior White House counsel during Trump's first term, said Trump's conflicts of interest far exceed those of any predecessor, "It's like complaining about a kayak when a B52 flies overhead." "As an ethics lawyer, my advice would be very clear: Don't do business deals with the family of a foreign head of state. It taints U.S. foreign policy."

A White House official said World Liberty Financial's business is separate from Trump, so any emoluments-related allegations are "false and irrelevant." White House Counsel Warrington said Trump "performs his constitutional duties in an ethical manner."

From Chip Deal to Binance Pardon

Trump and Mohammed viewed a model of an AI data center project during the visit last May

After taking a stake in World Liberty Financial, Tahnoon's push for AI chips accelerated.

The sheikh hosted global top tech and finance CEOs at Abu Dhabi royal estates, often posting meeting photos on Instagram, mostly on a set of white sofas. He was prepared to commit huge sums to the U.S. and emphasize the UAE's alignment with America in AI.

On Trump's first day in office (five days after Aryam signed the World Liberty Financial deal), the president announced at the White House that OpenAI and SoftBank planned a $500 billion AI data center project, with Tahnoon's MGX as one of two other designated investors. The project has not advanced since.

Last spring, Trump administration officials began discussing the chip deal framework with the UAE. Some officials saw no national security risk, while others shared the previous administration's concerns about technology eventually reaching China. Sources said they discussed schemes to limit chip control in the deal, one option being to exclude UAE firms like G42 from direct access, requiring the technology to be held by U.S. partners like Microsoft and OpenAI.

In March, Tahnoon led a delegation to Washington, aiming not only for the chip deal but also to push for faster U.S. government reviews of UAE investments in America. He met with Trump in the Oval Office and pledged the UAE would invest $1.4 trillion in the U.S. over a decade. A source said the pledge excited the president, though government officials struggled to understand its specifics.

On March 18, Trump hosted a dinner at the White House for Tahnoon and his delegation, inviting the vice president and cabinet members including the secretaries of state, commerce, and treasury. Tahnoon sat next to Witkoff, Edelman at the table's end. Trump later posted photos on Truth Social, touting the "bonds of friendship" between the countries, saying they discussed strengthening cooperation in economic and technological fields.

Former national security officials expressed shock at the level of access Tahnoon received. During the Biden administration, visiting foreign officials typically met only with their U.S. counterparts, not the president and six cabinet members.

Meanwhile, Tahnoon's ties to World Liberty Financial grew tighter. In May, Zach Witkoff announced at a cryptocurrency conference in Dubai that the sheikh