$500 million equity stake in exchange for top American AI chips: The secret deal between the UAE royal family 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 was inaugurated as president last year, an aide to a member of the Abu Dhabi royal family secretly signed an agreement with the Trump family to acquire 49% of its startup cryptocurrency company for $500 million. The buyer paid half of the amount upfront, with $187 million directly transferred to the Trump family entity's account.

This deal with World Liberty Financial had not been previously reported and was signed by President Trump's son Eric Trump. Documents show that at least an additional $31 million will flow to family-related entities of the company's co-founder Steve Witkoff, who was appointed as the U.S. special envoy to the Middle East just weeks prior.

Informed sources say that the financier behind this investment is Sheikh Tahnoon bin Zayed Al Nahyan, a member of the Abu Dhabi royal family who has been lobbying the U.S. for access to strictly controlled artificial intelligence chips. Tahnoon is sometimes referred to as the "spy chief," as he is the brother of the UAE president, the country's national security advisor, and the head of the largest sovereign wealth fund in the oil-rich nation. He controls a business empire worth over $1.3 trillion, supported by personal wealth and state funds, with operations spanning various fields from fish farming and artificial intelligence to surveillance technology, making him one of the most powerful single investors globally.

This transaction is unprecedented in U.S. political history: a foreign government official acquired a significant stake in a company owned by an incoming U.S. president.

During the Biden administration, Tahnoon's efforts to obtain AI hardware were largely thwarted due to concerns that sensitive technology might flow to China. Particularly alarming to U.S. intelligence officials and lawmakers was Tahnoon's AI company G42, which has close ties to the sanctioned tech giant Huawei and other Chinese firms, raising multiple alarms. Although G42 claims to have cut ties with China by the end of 2023, U.S. concerns remain.

Trump's victory reopened doors for Tahnoon. Informed sources indicate that in the months following, Tahnoon met multiple times with Trump, Witkoff, and other U.S. officials, including during a March visit to the White House, where the sheikh expressed a keen desire to collaborate with the U.S. in areas like AI.

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

The agreement is widely seen as a significant victory for the UAE's ruling family, breaking through long-standing U.S. national security concerns and allowing the country to compete with the world's strongest economies in the cutting-edge field of AI. Supporters of the agreement hailed it as a means for the U.S. to attract massive investments and help establish global standards for American technology.

What was previously unknown to the public is that Tahnoon's envoy signed the agreement to acquire 49% of World Liberty Financial back in January of that year.

Trump's visit to Abu Dhabi in May last year

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

Details of the $500 million transaction

Documents show that of the initial $250 million paid by Tahnoon-backed company Aryam Investment 1, $187 million was directly transferred to Trump family entities DT Marks DEFI LLC and DT Marks SC LLC. In addition to the funds flowing to Witkoff family entities, another $31 million was transferred to entities associated with co-founders Zak Folkman and Chase Herro. The Wall Street Journal has yet to determine the specific allocation of the remaining $250 million investment that Aryam is due to pay by July 15, 2025.

The agreement makes Aryam the largest shareholder of World Liberty Financial and the only known external investor besides the company's founders. Documents indicate that the deal secured Aryam two seats on the five-member board of World Liberty Financial, with the two Aryam executives appointed as directors also holding executive positions at Tahnoon's G42; at that time, board members included Eric Trump and Zach Witkoff (Steve Witkoff's son).

After Trump's victory, his real estate company sought partnerships with foreign firms, and the president himself accepted gifts from foreign governments, including a $400 million luxury jet from Qatar. However, the World Liberty Financial deal is the only known instance of a foreign government official purchasing a significant stake in a company owned by Trump after his election.

Information disclosed on World Liberty Financial's official website shows that the Trump family's equity stake dropped from 75% last year to 38%, indicating that an external party purchased shares, but the company has never disclosed the identity of the buyer.

Weeks before the announcement of the U.S.-UAE chip agreement in May, World Liberty Financial CEO Zach Witkoff announced that MGX, an investment company led by Tahnoon, would use the stablecoin issued by World Liberty Financial to complete a $2 billion investment in the cryptocurrency exchange Binance. An executive from G42, who entered the World Liberty Financial board, also serves as a director at MGX, which is jointly owned by G42.

Zach Witkoff promoted the collaboration with MGX's stablecoin as a recognition of World Liberty Financial's technology but did not disclose that MGX and World Liberty Financial are led by the same group of people.

David Wachsman, a spokesperson for World Liberty Financial, stated regarding the Aryam investment: "We reached this deal because we firmly believe it is in the best interest of the company's continued growth. The idea that a U.S. private company should adhere to special standards that other similar companies do not have to follow is both absurd and contrary to the American spirit."

He claimed that President Trump and Steve Witkoff were not involved in this transaction and have not participated in World Liberty Financial matters since taking office, and that Witkoff has never held an operational role at the company. He added that this transaction did not grant either party a channel to intervene in government decision-making or influence policy, "We adhere to the same rules and regulations as other companies in the industry."

A person familiar with Tahnoon's investment matters stated that Tahnoon and his team conducted a "months-long evaluation" of World Liberty Financial's plans before the investment, and that he completed the investment with "several co-investors," asserting that this investment did not utilize G42 funds. "At no point during due diligence or any subsequent stage was this investment discussed with President Trump." The individual stated that Tahnoon is a "significant investor" in the cryptocurrency business.

White House spokesperson Anna Kelly stated: "President Trump acts solely in the best interest of the American public." She noted that the president's assets are held in a trust managed by his children, "There is no conflict of interest," and stated that Witkoff is committed to "advancing President Trump's global peace objectives."

White House legal advisor David Warrington stated: "The president was not involved in any business transactions that could involve his constitutional duties."

He claimed that Witkoff strictly adheres to government ethics rules, "He has never, and will not, participate in any official matters that could affect his economic interests," and added that Witkoff has "divested any relevant interests in World Liberty Financial."

A person close to Witkoff stated that the envoy did not participate in negotiations related to AI chips with G42 but was briefed on related discussions.

A spokesperson for the Trump Organization stated that the company "takes its ethical obligations very seriously and is committed to preventing conflicts of interest," and complies with all applicable laws.

Tahnoon's AI chip push

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

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

For Tahnoon, obtaining U.S. chips is a top priority. He has been tasked by his brother to lead efforts to position the UAE as a global leader in the AI field. During the Biden administration, due to concerns that chips might flow to China, the U.S. only allowed the country to obtain a limited number of chips. Although G42 claims to have severed ties with China by the end of 2023, UAE entities, including other companies under Tahnoon's business empire, still maintain close ties with China.

Tahnoon hopes to secure approval for a significant number of additional chips to build one of the world's largest AI data center clusters, which would require power equivalent to that generated by two Hoover Dams. Tahnoon and his aides plan to lobby vigorously for support from the new Trump administration.

Tahnoon has long had business dealings with the Trump family through Trump's son-in-law Jared Kushner, whose investment company raised $1.5 billion from a Tahnoon-backed company in Qatar in 2024.

Shortly after the election, Trump appointed his longtime friend and golf buddy Steve Witkoff as the Middle East envoy. Witkoff quickly took action, informing Biden administration officials of his plans to reach out to contacts in the Middle East and to visit the UAE, Qatar, Saudi Arabia, and Israel before the inauguration.

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

The Wall Street Journal previously reported that Witkoff also met with Tahnoon as part of a series of talks in the region, discussing issues including a ceasefire in Gaza.

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

Company records reviewed by The Wall Street Journal show that the Delaware Aryam company is managed by executives from G42, while the Abu Dhabi entity shares an office address with several other companies under the sheikh's business empire.

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

The network of interests behind the deal

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

The agreement for Aryam to acquire shares in World Liberty Financial was signed by G42's general counsel, Tahnoon's core advisor Martin Edelman, and G42 CEO Peng Xiao. The deal also involved Tahnoon's personal investment company Royal Group, with Edelman serving as an advisor to that company as well.

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

The two played a key role in lobbying the Trump administration for chip access in the UAE.

Fiacc Larkin, G42's head of crypto and blockchain, joined World Liberty Financial as chief strategy advisor in January 2025. His LinkedIn profile indicates that he also provides advisory services to the Abu Dhabi Department of Economic Development, a government agency.

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

Born in China, Peng Xiao attended university in Washington, D.C., and after obtaining U.S. citizenship, he renounced it to join the UAE. During the Biden administration, Peng himself was also scrutinized.

In 2024, a Republican committee chairman stated in a letter to the Department of Commerce that documents indicated a "vast network" behind Peng, consisting of UAE and Chinese companies.

Trump meeting with Mohammed during his visit last May. G42 CEO Peng Xiao was present (second from left)

G42 denied the allegations in a statement that year, claiming the company had ceased cooperation with Chinese firms.

Edelman is a well-known real estate attorney in New York, having cultivated connections in the UAE for decades. He provides advisory services to the UAE royal family and serves on the boards of several Tahnoon-owned companies, including G42 and MGX. He is also a longtime friend of Witkoff, who publicly praised Witkoff after the election.

Company documents reviewed by The Wall Street Journal indicate that this share acquisition deal yielded substantial profits for the founders of World Liberty Financial, with the Trump family, Witkoff family, and entities associated with Folkman and Herro quickly receiving financial returns. Trump's disclosure documents show that by the end of 2024, he personally held 70% of DT Marks DEFI, 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 transaction details

Trump has long faced criticism for retaining control of his private business empire and profiting from overseas earnings during his presidency. During his first term, Democratic lawmakers sued Trump, accusing him of profiting from foreign governments patronizing his businesses, violating the Constitution's "Emoluments Clause." Trump called it political persecution, while the Justice Department stated that Trump's profit-sharing did not constitute emoluments, and the Supreme Court ultimately declined to hear the case.

During his second term, Trump's real estate holding company, the Trump Organization, stated that it would not enter into new contracts with foreign governments during the president's term, but it did not restrict new collaborations with foreign private enterprises, which was a relaxation compared to the first term. The company stated that it would donate profits obtained from identifiable foreign government officials in its hotel and other businesses to the U.S. Treasury. World Liberty Financial made no such commitment.

Legal experts indicate that the transaction with Aryam may violate the Emoluments Clause, and the timing of the UAE chip agreement is closely aligned with the World Liberty Financial transaction, constituting a significant conflict of interest.

Kathleen Clark, a law professor at the University of Washington and former ethics lawyer for the D.C. government, stated that the clause is intended to prevent any government official from "being bought off by foreign governments." "This clearly appears to violate the Foreign Emoluments Clause, and more importantly, it looks like a bribe."

She stated that this transaction "should be a five-alarm warning for the federal government."

Ty Cobb, who served as a senior legal advisor in the White House during Trump's first term, stated that Trump's conflicts of interest far exceed those of previous presidents, "It's like a B52 bomber flying overhead while you're complaining about a kayak." "As an ethics lawyer, my advice would be very clear: do not engage in business transactions with the families of foreign leaders. It tarnishes U.S. foreign policy."

A White House official stated that World Liberty Financial's business is unrelated to Trump, so any emoluments-related allegations are "false and irrelevant." White House legal advisor Warrington stated that Trump "fulfills his constitutional duties in an ethical manner."

From chip deals to Binance pardons

Trump and Mohammed visiting a model of an AI data center project during last May's visit

After acquiring a stake in World Liberty Financial, Tahnoon's efforts to secure AI chips accelerated.

The sheikh hosted CEOs of top global tech and finance companies at the Abu Dhabi royal estate and often posted photos of meetings on Instagram, most of which took place on a set of white sofas. He was prepared to commit to investing substantial sums in the U.S. and emphasized that the UAE is now tied to the U.S. in the AI field.

On the first day of Trump's presidency (five days after Aryam signed the agreement with World Liberty Financial), the president announced at the White House that OpenAI and SoftBank planned to create a $500 billion AI data center project, with Tahnoon's MGX being one of two designated investors. The project has yet to advance.

In the spring of last year, Trump administration officials began discussing the framework for a chip agreement with the UAE. Some officials did not perceive a national security risk, while others still held the previous administration's concerns that technology could ultimately flow to China. Informed sources indicated that they discussed proposals to limit chip control in the agreement, one of which was to exclude UAE companies like G42 from direct access, requiring the technology to be held by American partners like Microsoft and OpenAI.

In March, Tahnoon led a delegation to Washington, where, in addition to the chip agreement, he also aimed to expedite the U.S. government's review of UAE investments in the U.S. He met with Trump in the Oval Office and promised that the UAE would invest $1.4 trillion in the U.S. over the next decade. An informed source stated that this promise greatly excited the president, although government officials found it difficult to understand the specifics of the commitment.

On March 18, Trump hosted a dinner at the White House for Tahnoon and his delegation, inviting the vice president and cabinet members such as the secretary of state, commerce secretary, and treasury secretary. Tahnoon sat next to Witkoff, with Edelman at the end of the table. Trump later posted photos on Truth Social, promoting the "bonds of friendship" between the two countries, stating that they discussed strengthening cooperation in economic and technological fields.

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

Meanwhile, Tahnoon's ties to World Liberty Financial grew closer. In May, Zach Witkoff announced at a cryptocurrency conference in Dubai that the sheikh's investment company MGX would use the stablecoin USD1 issued by World Liberty Financial to complete a $2 billion investment in Binance, the largest single investment in the history of the cryptocurrency company. Zach Witkoff smiled, thanking MGX for "their trust in us."

This move elevated USD1 to the ranks of the world's largest stablecoins, enhancing its financial credibility and providing World Liberty Financial with a $2 billion cash reserve. The company used these funds as reserves to maintain the stablecoin's peg to the dollar at a 1:1 ratio and invested the funds in U.S. Treasury bonds to earn interest, which could yield approximately $80 million if held for a year.

MGX stated to The Wall Street Journal last year that it evaluated stablecoins across multiple platforms and considered factors such as "business applicability" before choosing USD1. A spokesperson for World Liberty Financial stated that USD1 is a "superior product."

Neither company has disclosed the fact that MGX and World Liberty Financial share management.

In fact, Aryam's transaction laid the groundwork for the launch of USD1. This investment was split between two newly established World Liberty Financial entities, one responsible for operating the new stablecoin product and the other managing the company's remaining business.

Sources close to the company indicated that G42's Larkin is in charge of the USD1 project at World Liberty Financial.

Tahnoon's $2 billion investment in Binance through MGX implies that he has a financial interest in pushing for a pardon for Binance founder Changpeng Zhao. This move could pave the way for Binance's return to the U.S. market. In 2023, Binance and Zhao were banned from operating in the U.S. after pleading guilty to violating anti-money laundering rules.

Zhao now resides in Abu Dhabi and obtained UAE citizenship years ago, maintaining a close relationship with Tahnoon and establishing strong ties with the UAE royal family.

Informed sources indicated that individuals close to the royal family lobbied the Trump administration for a pardon for Zhao, claiming it would help the world's largest cryptocurrency exchange return to the U.S. A pardon for Zhao would also open the door for UAE authorities to issue Binance a comprehensive regulatory license, completing Binance's plan to establish Abu Dhabi as its new global headquarters and boosting the capital's global financial ambitions.

Binance itself is also seeking to return to the U.S. through a pardon. The Wall Street Journal previously reported that the company has taken multiple steps to promote the development of World Liberty Financial's business. Zhao denied any business relationship with Trump's cryptocurrency company, while Binance stated it did not control the stablecoin chosen by MGX and had "limited involvement" with World Liberty Financial's related products. World Liberty Financial denied playing any role in the pardon, with its lawyers stating that its business dealings with Binance are routine. A person close to Steve Witkoff stated that he was not involved in the pardon for Zhao.

Zhao's lawyer Teresa Goody Guillén stated that the pardon for her client did not allow Binance to enter the U.S. market, as the UAE has been broadly attracting cryptocurrency companies. She stated that negative interpretations of Zhao's pardon are "an illegal usurpation of presidential pardon power."

On May 8 last year, the U.S. Treasury announced the launch of a fast-track pilot program for foreign investors, which was precisely the investment review acceleration process the UAE was lobbying for.

During Trump's visit to Abu Dhabi that month, he announced that the two countries had reached "a very significant agreement" regarding the UAE's purchase of U.S. AI chips. Months later, after further negotiations, the Trump administration approved the sale of 35,000 chips to G42, fewer than the UAE had anticipated.

During a May demonstration at the royal palace, Trump closely examined the bright 3D model of the large AI data center project that G42 planned to develop, with Steve Witkoff and Tahnoon watching nearby. Trump repeatedly mentioned Tahnoon during local meetings, telling UAE President Mohammed that his "good brother" had just visited Washington; Tahnoon then posted photos with Trump and Witkoff on Instagram.

Trump predicted that the relationship between the two countries "will only get closer and better." He told Mohammed: "Our relationship is already good enough."

In September, according to an agreement negotiated by the Trump administration, MGX became one of the few selected investors to operate TikTok's U.S. business.

On October 22 last year, Steve Witkoff, Jared Kushner, and Tahnoon posted a photo on social media

The following month, Trump pardoned Zhao, sparking outrage among Democratic lawmakers who accused him of selling pardons to the highest bidder.

On October 22, the day before the White House confirmed that Trump had signed the pardon, a White House official stated that Witkoff and Kushner had returned to Abu Dhabi to discuss Gaza, Israel, and Trump's peace commission plan. Their meeting was with none other than Tahnoon.