The US government is considering restricting the export of AI chips to Gulf countries, due to national security concerns.
The Biden administration has secretly discussed restricting sales of advanced AI chips from Nvidia and AMD to certain Gulf countries, possibly including Saudi Arabia and the United Arab Emirates (UAE), which are investing heavily in AI data centers, Bloomberg reported on Monday.
This restriction could place a ceiling on export licenses for these countries.
The move comes amid growing concerns from the White House about US AI chips, which it sees as a key competitive advantage on the international stage. Saudi Arabia is said to have planned to set up a $40 billion fund this year to invest in AI technology, while OpenAI is said to have been in talks with a UAE-backed investment fund about participating in its latest $6.6 billion funding round.
US officials are particularly focused on Persian Gulf countries, where demand for AI data centers is growing along with ample financial resources to fund them.
The Biden administration has increasingly viewed American AI chips as a strategic advantage on the international stage. Last year, the US banned the sale of advanced AI chips from Nvidia and AMD to China and imposed export restrictions on AI chips from companies like Nvidia to more than 40 countries over concerns they could be diverted to China.
But US restrictions on chip sales in China are having a broader impact. ASML Holding, Europeâs most valuable chip company, fell sharply after booking only half of its estimated third-quarter orders.
The ban on the sale of high-end AI chips has caused trouble for both multinational and domestic companies.
The company's shares have fallen 30% since hitting a record high in July, hit by the prospect of further US restrictions as well as general industry weakness.
