Export controls for Nvidia AI chips under US review

Nvidia and other companies may face tighter restrictions as the US mulls capping AI chip exports to certain nations.

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US officials are considering restricting the sale of advanced AI chips from Nvidia and other American firms to certain countries, focusing on the Persian Gulf region. These deliberations aim to limit exports based on national security concerns, Bloomberg News has reported, citing sources familiar with the discussions.

The idea has gained traction in recent weeks, although plans remain in early stages and may change. Neither the US Commerce Department nor Nvidia commented on the matter. Intel and AMD also did not immediately respond to inquiries from Reuters.

Recent regulatory updates from the Commerce Department could simplify the export process. Data centres in the Middle East may apply for Validated End User status, enabling them to obtain AI chips through a general authorisation, bypassing the need for individual export licences.

In 2023, the Biden administration expanded licensing rules to tighten AI chip exports to over 40 countries, including some Middle Eastern nations, amid concerns that exports might be diverted to China or used in ways conflicting with US security interests.