The United States is Reported to Be Considering Restricting the Export of AI Chips by Nvidia, AMD and Others to Some Countries

In recent years, Middle Eastern countries have shown obvious ambition and positive actions in promoting the development of AI technology and industry, just like other countries and regions in the world. In this process, Saudi Arabia and the UAE have become the core driving forces in the region’s AI field. At the same time, given the leading position of the artificial intelligence industry, the US government is implementing a series of strategies aimed at restricting the export of high-end AI chips to meet global security challenges and strive to maintain its technological leadership in international competition.

According to foreign media reports on October 15 local time, the US government is exploring the possibility of setting a license limit for local companies such as Nvidia and AMD when exporting AI chips to specific countries. The discussion focused on eight countries in the Persian Gulf region, including Iran, Iraq, Kuwait, Saudi Arabia, Bahrain, Qatar, the United Arab Emirates and Oman. Given the continued rise in demand for artificial intelligence data centers in these countries, this move is expected to have a certain impact on these countries’ artificial intelligence development capabilities. However, the topic is still in the preliminary discussion stage, and its specific direction has not yet been determined.

The new policy aims to establish a national export license cap system, with national security as the main starting point. In the past few years, the United States has implemented strict export control measures on AI chips to China, such as prohibiting the export of top computing chips from companies such as Nvidia and AMD to mainland China. In addition, since October 17, 2023, the Bureau of Industry and Security of the U.S. Department of Commerce has issued new export control rules, further expanding the scope of sales restrictions on high-end AI chips to China, involving a number of advanced models of Nvidia, such as A100, A800, H100 and H800. These measures are not limited to the chips themselves, but also include equipment related to chip manufacturing. Their core purpose is to hinder China’s acquisition of advanced semiconductor technology and thus curb its technological development in the military and security fields.

It is worth mentioning that in August 2023, the U.S. government took more extensive actions and implemented similar AI chip export restrictions on more than 40 countries, including the Middle East, Africa and Asia. Behind this move is the US government’s deep concern that high-tech products may be illegally transferred to China and then used by China to enhance its military and technological capabilities. The US government believes that if these advanced AI chips fall into the wrong hands, they may pose a potential threat to international security and stability.

Now, against the background of the strict export control policy that has been implemented before, the US government has once again pointed the finger at Middle Eastern countries, intending to prevent advanced semiconductor technology from flowing into countries or regions that may use it for military purposes by further strengthening restrictions. This move not only reflects the US government’s determination to maintain global technological security and balance, but also indicates that in the future, the circulation and trading of international high-tech products will face a more complex and strict regulatory environment.

Faced with a series of chip export restrictions imposed by the US government on China, few companies in the industry have publicly expressed support. On the contrary, the CEOs of the three leading US chip companies, Intel, Nvidia, and Qualcomm, personally went to Washington last year to lobby, strongly warning that the implementation of these export control measures could seriously undermine the United States’ global leadership in the semiconductor industry. In particular, Nvidia CEO Huang Renxun made it clear in an interview last year that the Chinese market is of irreplaceable importance to Nvidia. He emphasized that withdrawing from the Chinese market is not a viable option because the huge demand and growth potential of the Chinese market are crucial to the long-term development of high-tech companies such as Nvidia.

It is still unknown how the leading AI chip manufacturers will respond to this challenge. However, looking back at the comprehensive chip regulations previously introduced by the Biden administration against China, companies such as Nvidia have successfully circumvented regulatory restrictions by adopting clever product design strategies and continued to maintain a certain market share in the Chinese market. Today, facing a more complex international situation, whether these manufacturers can once again turn danger into safety is a matter of concern.

The US plan to restrict the sale of AI chips by companies such as Nvidia and AMD to some countries will undoubtedly trigger a far-reaching chain reaction in the global technology field. On the one hand, US chip manufacturers may face the risk of reduced market share and declining revenue due to export restrictions, which will have a significant impact on their business. On the other hand, countries in the Persian Gulf region will have to explore new paths to meet this challenge. They may increase investment in local chip research and development in order to achieve technological autonomy, or establish cooperative relations with non-restricted countries to jointly promote the vigorous development of their AI industry.

Faced with this environment with both opportunities and challenges, countries need to take positive actions and formulate effective strategies to defend their own interests. At the same time, we must deeply realize that scientific and technological development is not only a solid foundation for national security, but also a core driving force for economic development. Only by continuously promoting scientific and technological innovation and deepening international cooperation and exchanges can we work together to cope with global problems and jointly create a new situation of mutually beneficial and win-win development.