U.S. Considers Capping AI Chip Exports to Persian Gulf Nations Over Security Concerns

Oct 15, 2024, 08:03 AM

The U.S. government is reportedly considering capping exports of advanced artificial intelligence (AI) chips from Nvidia Corp. ($NVDA), Advanced Micro Devices Inc. ($AMD), Intel Corp. ($INTC), and other American companies to certain countries, particularly those in the Middle East and Persian Gulf regions, due to national security concerns. Biden administration officials have discussed setting ceilings on export licenses on a country-specific basis to limit some nations' AI capabilities amid growing AI data center demand in these regions. The proposed restrictions could tighten existing controls and potentially lead to revenue loss for companies like Nvidia and AMD, whose shares fell following the news. The deliberations are in early stages and remain fluid.