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The U.S. reportedly could cap sales of advanced artificial intelligence chips from U.S.-based chipmakers to certain countries, including those in the Middle East.
Biden administration officials in recent weeks have discussed putting a ceiling on export licenses for advanced AI chips, including those from Nvidia (NVDA-3.10%) and Advanced Micro Devices (AMD+0.74%), citing national security concerns, Bloomberg reported citing unnamed people familiar with the matter. The Biden administration’s focus is reportedly on countries in the Middle East that have started pouring billions into AI data centers.
A ceiling on export licenses would follow the Commerce Department’s recent expansion of its license exceptions to include data centers. The license exception makes it easier for U.S. companies to send AI chips to countries building data centers in the Middle East.
Earlier this year, U.S. officials started slowing down the issuing of licenses to Nvidia, AMD, and other U.S. chipmakers for shipping large-scale AI accelerators to the Middle East, Bloomberg reported. U.S. officials were also reportedly carrying out a national security review of AI technology being developed in the region.
Nvidia and the Commerce Department’s Bureau of Industry and Security, which is responsible for export controls, both declined Quartz’s request for comment. AMD did not immediately respond to a request for comment.
In June, Saudi Arabia announced its National Semiconductor Hub to develop semiconductor companies that can design new chips. The kingdom said it wants to attract 50 firms to Saudi Arabia by 2030. However, the hub is currently focused on simple chips, not advanced chips for AI and military technology, Bloomberg reported.
Saudi Arabia’s Public Investment Fund, which has investments in U.S. tech startups, has set aside $40 billion to invest in AI technology, the New York Times reported earlier this year. The fund is reportedly working with top U.S. investors, including Andreessen Horowitz.