In This Story The U. S. is reportedly considering capping the sales of advanced artificial intelligence chips from American manufacturers to specific countries, particularly in the Middle East. Recent discussions among Biden administration officials have centered on imposing limits on export licenses for high-performance AI chips, including those made by Nvidia (NVDA) and Advanced Micro Devices (AMD), due to national security issues, according to Bloomberg, which cited unnamed sources. The administration is particularly focused on Middle Eastern nations that have begun investing billions in AI data centers. Implementing a limit on export licenses would align with the Commerce Department's recent broadened license exceptions to cover data centers. This exception facilitates U. S. companies in exporting AI chips to countries that are constructing data centers in the Middle East. Earlier this year, U. S.

officials took steps to slow down license approvals for Nvidia, AMD, and other American chipmakers for exporting large-scale AI accelerators to the region, as reported by Bloomberg. Additionally, there is an ongoing national security review regarding AI technology being developed in the Middle East. Both Nvidia and the Commerce Department’s Bureau of Industry and Security, which oversees export controls, declined to comment to Quartz. AMD has not yet responded to inquiries for comment. In June, Saudi Arabia unveiled its National Semiconductor Hub aimed at fostering semiconductor companies that can create new chip designs. The kingdom has set a goal to attract 50 firms to Saudi Arabia by 2030. However, the hub is currently focused on less complex chips, rather than advanced chips for AI and military applications, as reported by Bloomberg.