Oct 16, 2024 19:00:00

The US government is considering capping the number of AI chips sold per country, mainly in the Middle East, for national security reasons

Bloomberg reported, citing sources, that the US government is considering imposing sales caps on the number of products that US companies such as Nvidia can sell to foreign companies per country.

US Weighs Capping Nvidia, AMD AI Chip Sales to Some Countries - Bloomberg

https://www.bloomberg.com/news/articles/2024-10-15/us-weighs-capping-exports-of-ai-chips-from-nvidia-and-amd-to-some-countries

US govt reportedly mulls capping AI GPU exports from Nvidia and AMD to the Middle East | Tom's Hardware
https://www.tomshardware.com/tech-industry/artificial-intelligence/us-govt-reportedly-mulls-capping-ai-gpu-exports-from-nvidia-and-amd-to-the-middle-east

The approach is being taken on national security grounds, with government officials particularly looking to Middle Eastern countries such as the United Arab Emirates and Saudi Arabia, which have growing interest in and deep pockets to build AI data centers, the person said, speaking on condition of anonymity.

So far, the Biden administration has restricted chip companies such as NVIDIA and AMD from shipping AI chips to more than 40 countries in the Middle East, Africa, and Asia, citing concerns that products could be diverted to China. If sales caps were to be set on a country-by-country basis, this would be a clear tightening of restrictions, and some people involved have begun to view the export of AI chips as a diplomatic bargaining chip.

Sources said the discussions are still in the early stages and are fluid.

On September 30, 2024, the US Department of Commerce

updated its framework for technology exports to data centers, tightening the certification standards for licenses and making it easier for partners to access US technology. At the time, a Commerce Department official said, 'More rules are coming.'

Bloomberg reached out to the Commerce Department, NVIDIA, AMD and others, but all declined to comment.

The United States has already placed restrictions on semiconductor exports to China and other countries, but China, which has been hit by the restrictions, is making large investments to secure the technology domestically and is working hard to secure semiconductors by producing low-spec semiconductors that allow American semiconductor manufacturers to circumvent the restrictions.

NVIDIA reports that it is developing a new flagship AI chip 'B20' for China that complies with US export controls - GIGAZINE

Some government officials have called for a more restrictive approach to global AI chip exports, while others have warned against going too restrictive, lest a rise in China allow it to snatch up customers around the world, according to Bloomberg.

Bloomberg said, 'If President Biden goes ahead with country-specific caps, it may be difficult for him to enact the new policy in the final months of his term. Such rules would be difficult to enforce and would pose a major test for U.S. foreign relations.'