US Department of Commerce Slows Down NVIDIA and AMD's Export of AI Chips to the Middle East
According to insiders, US officials have slowed down the issuance of licenses to chip manufacturers such as Nvidia and AMD, allowing them to ship artificial intelligence (AI) accelerators on a large scale to the Middle East, while officials are conducting national security reviews of AI development in the region.
According to insiders, it is currently unclear how long the review will take and there is no specific definition of "large-scale shipment". Officials are particularly concerned about large-scale sales, as countries including the United Arab Emirates and Saudi Arabia hope to import large quantities of chips for AI data centers.
AI accelerators can help data centers process a large amount of information required for the development of artificial intelligence chatbots and other tools. They have become essential equipment for companies and governments seeking to establish AI infrastructure.
Last October, the US Department of Commerce expanded the scope of chip export restrictions originally aimed at China and a few other foreign competitors to most parts of the Middle East. This means that companies need to obtain special permission from the US government to transport cutting-edge semiconductor and chip manufacturing tools to countries such as Saudi Arabia and the United Arab Emirates.
According to insiders, in the past few weeks, US officials have delayed or failed to respond to permit applications submitted under the rules. This includes attempting to sell products to customers in the United Arab Emirates, Saudi Arabia, and Qatar. In addition to NVIDIA and AMD, Intel and startup Cerebras Systems also produce accelerator chips. These four companies refuse to comment.
According to insiders, this move aims to give the United States time to develop a comprehensive strategy around how to deploy advanced chips overseas. This includes negotiating who will manage and protect the facilities used to train AI models.
The US Department of Commerce stated in a statement that its top priority is "protecting national security.".
"For the most cutting-edge technologies, we conduct extensive due diligence through cross departmental processes and thoroughly review the licensing applications of applicants who intend to ship these advanced technologies to various parts of the world," said a representative from the US Department of Commerce. "As always, we remain committed to working with partners in the Middle East and around the world to protect our technology ecosystem."
Thea Kendler, the head of export management at the US Department of Commerce, visited the United Arab Emirates, Saudi Arabia, Qatar, and Kuwait earlier in May this year as part of ongoing discussions. Insiders say that in the United Arab Emirates, Thea Kendler stated that progress has been made in cooperation on semiconductor export controls.
At the same time, the Biden administration has been conducting a broader campaign to prevent China from obtaining advanced semiconductors and manufacturing equipment from other parts of the world.
The United Arab Emirates and Saudi Arabia have been competing for regional leadership in the field of artificial intelligence, with the aim of reducing their economic dependence on oil. Both countries regard the United States as a key partner in this effort, and senior officials and companies have stated that they will meet US demands by shifting China's supply chain or completely abandoning Chinese technology.
Meanwhile, Saudi Arabia has just reached an agreement with Lenovo Group to establish a research and development center in Riyadh.
The ability to obtain an export license is an important component of Microsoft's $1.5 billion investment in Abu Dhabi's artificial intelligence company G42 negotiations, which were reached after several months of negotiations with US officials.
AI accelerators can help data centers process a large amount of information required for the development of artificial intelligence chatbots and other tools. They have become essential equipment for companies and governments seeking to establish AI infrastructure.
Last October, the US Department of Commerce expanded the scope of chip export restrictions originally aimed at China and a few other foreign competitors to most parts of the Middle East. This means that companies need to obtain special permission from the US government to transport cutting-edge semiconductor and chip manufacturing tools to countries such as Saudi Arabia and the United Arab Emirates.
According to insiders, in the past few weeks, US officials have delayed or failed to respond to permit applications submitted under the rules. This includes attempting to sell products to customers in the United Arab Emirates, Saudi Arabia, and Qatar. In addition to NVIDIA and AMD, Intel and startup Cerebras Systems also produce accelerator chips. These four companies refuse to comment.
According to insiders, this move aims to give the United States time to develop a comprehensive strategy around how to deploy advanced chips overseas. This includes negotiating who will manage and protect the facilities used to train AI models.
The US Department of Commerce stated in a statement that its top priority is "protecting national security.".
"For the most cutting-edge technologies, we conduct extensive due diligence through cross departmental processes and thoroughly review the licensing applications of applicants who intend to ship these advanced technologies to various parts of the world," said a representative from the US Department of Commerce. "As always, we remain committed to working with partners in the Middle East and around the world to protect our technology ecosystem."
Thea Kendler, the head of export management at the US Department of Commerce, visited the United Arab Emirates, Saudi Arabia, Qatar, and Kuwait earlier in May this year as part of ongoing discussions. Insiders say that in the United Arab Emirates, Thea Kendler stated that progress has been made in cooperation on semiconductor export controls.
At the same time, the Biden administration has been conducting a broader campaign to prevent China from obtaining advanced semiconductors and manufacturing equipment from other parts of the world.
The United Arab Emirates and Saudi Arabia have been competing for regional leadership in the field of artificial intelligence, with the aim of reducing their economic dependence on oil. Both countries regard the United States as a key partner in this effort, and senior officials and companies have stated that they will meet US demands by shifting China's supply chain or completely abandoning Chinese technology.
Meanwhile, Saudi Arabia has just reached an agreement with Lenovo Group to establish a research and development center in Riyadh.
The ability to obtain an export license is an important component of Microsoft's $1.5 billion investment in Abu Dhabi's artificial intelligence company G42 negotiations, which were reached after several months of negotiations with US officials.