[News] US Reportedly Slows NVIDIA and AMD from Selling AI Chips to the Middle East

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According to a report from Bloomberg, US officials have slowed down the issuance of licenses for chip manufacturers like NVIDIA and AMD to export large quantities of AI accelerators to the Middle East. Meanwhile, officials are conducting a national security assessment of AI developments in the region.

As per Bloomberg’s report citing sources, it is still unclear how long the assessment will take and what exactly constitutes a large-scale export. They said that officials are particularly concerned about large-scale sales because countries like the UAE and Saudi Arabia are looking to import significant quantities of chips for AI data centers.

AI accelerators can help data centers process the massive amounts of information required for developing AI chatbots and other tools. They have become essential equipment for companies and governments seeking to build AI infrastructure.

Reportedly, sources have revealed that slowing down exports is intended to give Washington time to formulate a comprehensive strategy on how advanced chips should be deployed overseas. Some of these sources mentioned that this includes negotiating who will manage and secure the facilities used to train AI models.

The US Department of Commerce stated in a statement that “protecting national security” is the top priority.

“With regards to the most cutting edge technologies, we conduct extensive due diligence through an interagency process, thoroughly reviewing license applications from applicants who intend to ship these advanced technologies around the world,” a representative for the department said. “As always, we remain committed to working with our partners in the Middle East and around the world to safeguard our technological ecosystem.”

Addressing national security concerns, earlier this month, the U.S. government has reportedly revoked the licenses of Intel and Qualcomm to supply semiconductor chips used in laptops and handsets to Huawei. According to Reuters citing sources, some companies received notices on May 7th, and the revocation of the licenses took immediate effect.

Read more

• [News] U.S. Imposes Further Sanctions, Revoking Intel and Qualcomm’s License to Supply Chips to Huawei
• [News] US Considers Sanctioning Huawei-Linked Chinese Chip Network, Huawei-Related Enterprises Blacklisted

(Photo credit: NVIDIA)