The transaction creates a significant conflict of interest and might breach the constitutional prohibition preventing a president from receiving benefits from foreign nations, according to the WSJ.
Tahnoon bin Zayed Al Nahyan
Tahnoon bin Zayed Al Nahyan (Photo: Mohamed Al Hammadi / UAE Presidential Court / Reuters)
A high-ranking official in the UAE government acquired a substantial stake in a cryptocurrency startup belonging to the family of US President Donald Trump just prior to his second inauguration. This $500 million investment, channeled via Trump family entities, coincided with Sheikh Tahnoon bin Zayed Al Nahyan’s vigorous lobbying efforts to gain access to cutting-edge American artificial intelligence chips. The Wall Street Journal reported this, citing sources and documents.
The agreement between World Liberty Financial and envoys for Sheikh Tahnoon was finalized in January of last year. Under its terms, 49% of the company’s shares, co-founded by Eric Trump and Steve Witkoff (who was soon appointed as the ambassador to the Middle East), were transferred to the control of the Aryam investment fund, which is associated with Tahnoon, whom the WSJ labels the “spy sheikh.”
World Liberty Financial operates in the decentralized finance sector. Donald Trump holds the title of “co-founder emeritus,” while his sons—Eric, Donald Jr., and Barron—serve as active co-founders. Entities connected to the Trump family retain control over approximately 38% of the holding company and receive a considerable portion of the operational profits. The day-to-day management of the venture is overseen by CEO Zach Witkoff, the son of US Presidential Special Envoy Steve Witkoff.
Sheikh Tahnoon, the brother of the UAE President and the head of the nation’s largest sovereign wealth fund, has long sought access to American AI chips, the newspaper indicates. Under the Joe Biden administration, his endeavors were obstructed due to concerns that technology might be transferred to China via his company, G42. Trump’s election opened up new avenues.
In the ensuing months, Tahnoon met repeatedly with Trump and his team, including at the White House. Shortly thereafter, the US and the UAE announced a deal to supply hundreds of thousands of advanced chips. A portion of these were earmarked for G42, marking a major strategic accomplishment for the UAE, the WSJ notes.
Ethics experts commented that the deal involving World Liberty generated serious conflicts of interest and potentially violates the constitutional bar on presidents accepting foreign emoluments, the WSJ reports. The White House rejects any accusations of impropriety, asserting that Trump has no involvement in the company’s business operations.
Tahnoon oversees numerous assets in Abu Dhabi, ranging from wealth funds to G42, the region’s leading artificial intelligence firm. According to Bloomberg data, the total estimated valuation of his holdings amounts to $1.5 trillion.
In April 2024, Microsoft, with backing from the Biden administration, invested $1.5 billion into Tahnoon’s G42. The Sheikh intensified efforts to secure American partners, and his subsequent visit to the US culminated in the establishment of the MGX fund in Abu Dhabi, which plans to inject over $100 billion into AI infrastructure, including within the US. Furthermore, MGX pledged to contribute $7 billion to finance Trump’s Stargate AI initiative, which he unveiled following his inauguration.
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