The Biden administration is considering implementing country-specific caps on sales of advanced AI chips from Nvidia and other U. S. companies, which would limit the AI capabilities of certain nations. Discussions, which remain in the early stages, focus particularly on Persian Gulf countries interested in developing AI data centers. Current considerations include a licensing framework that facilitates shipments to data centers in countries like the UAE and Saudi Arabia. The Commerce Department's Bureau of Industry and Security, responsible for overseeing export controls, did not comment on the potential policy. Both Nvidia and AMD have also refrained from commenting. A National Security Council spokesman highlighted a recent U. S. -UAE statement recognizing the benefits and risks of AI technology, which emphasizes the need for safeguards. If implemented, these caps would extend restrictions that previously targeted China and address wider security concerns regarding AI development globally. The Biden administration has already limited AI chip exports to 40 countries over fears of diversion to China. U. S.

officials view semiconductor export licenses as leverage for broader diplomatic strategies, raising concerns about potential surveillance capabilities in countries with robust surveillance systems. The challenge of how global AI development impacts U. S. intelligence operations is also being considered. While the response from leading AI chipmakers to these potential restrictions is uncertain, past measures have prompted Nvidia to modify its offerings to retain access to certain markets. As countries strive to achieve self-reliant AI systems, demand for advanced processors escalates, with Nvidia leading the market. Meanwhile, China is working on its semiconductor technologies, but U. S. officials remain cautious about future competitive dynamics. Overall, officials are contemplating a balance between restricting sales to safeguard national interests and ensuring U. S. technology remains accessible to allies, as they refine regulations for licensing shipments to data centers.