US mulls expanding AI chip export cap to UAE, Saudi Arabia

The US is considering expanding its export restrictions on Nvidia and AMD AI chips to include countries in the Persian Gulf, potentially targeting Saudi Arabia and the United Arab Emirates.

The policy would be part of a national security effort to limit access to advanced American AI technology. 

Bloomberg reports that these restrictions, which are being privately discussed in the White House, could cap sales and require export licenses for countries heavily investing in AI infrastructure.

It’s not yet clear whether the restrictions would come under the Biden administration or the subsequent administration.

The US previously banned AI chip exports to China and imposed similar restrictions on 40 other nations to prevent indirect sales of sensitive technology to China. 

The move to target Persian Gulf nations comes as both Saudi Arabia and the UAE ramp up their AI investments, with Saudi Arabia reportedly launching a US$40 billion AI investment fund this year and the UAE involved in OpenAI’s latest funding round.

Such a policy would go to show how seriously the US views advanced AI chips as a strategic asset, with potential geopolitical risks if they are accessed by countries aiming to grow their influence in AI.

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