Biden Considers AI Chip Export Curbs to Gulf

The Biden administration is considering capping the sales of advanced AI chips from Nvidia and AMD to certain Persian Gulf countries, such as Saudi Arabia and the UAE, due to national security concerns. This move would expand on existing restrictions that already limit exports to over 40 countries, including China, to prevent the technology from inadvertently reaching Chinese markets. The discussions are still in early stages, and the new framework could allow data centers to apply for Validated End User status, simplifying the receipt of AI chips. The Persian Gulf countries have been heavily investing in AI data centers, prompting concerns about the potential use and diversion of such technology. Nvidia's shares, which reached record highs recently, have been affected by the news of potential export limitations. The proposed caps are part of a broader strategy to regulate AI technology exports, ensuring they do not enhance surveillance capabilities in regions with robust surveillance systems.