AI
The heading translates to: "US Government Reviews AI Development in the Middle East and Slows Down Chip Exports.
The US government prevented China's access to semiconductor technology – Now AI development in the Middle East is under review.
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The US government has initiated a national security review of artificial intelligence (AI) development in the Middle East. This is reported by Bloomberg, citing people familiar with the matter. At the same time, the issuance of licenses to chip manufacturers like NVIDIA and AMD for large-scale AI chip deliveries to the region has been slowed down.
Already last year, the US government had introduced export restrictions to deny China access to advanced semiconductor technology. These restrictions have now been extended to a large part of the Middle East. The reason for this is the concern that Chinese companies, which are already largely cut off from modern US technology, could access the chips through data centers in the Middle East.
The U.S. Department of Commerce emphasized in a statement that the protection of national security has the highest priority. "With respect to the most advanced technologies, we conduct a comprehensive due diligence review through an interagency process, thoroughly examining license applications from applicants intending to deliver these advanced technologies worldwide," explained a representative of the department. "As always, we remain committed to working with our partners in the Middle East and around the world to protect our technological ecosystem.
It remains unclear how long the review will take and what exactly is meant by a 'large shipment.' According to the information, officials are mainly focusing on bulk sales, as Middle Eastern countries are attempting to import large quantities of chips used in AI data centers.
The United Arab Emirates and Saudi Arabia compete for regional leadership in the field of AI. Both countries aim to reduce their dependence on oil and see the USA as an important partner in these efforts. High-ranking officials and companies in these countries have already indicated that they would comply with US demands to keep Chinese supply chains separate or completely detach from Chinese technology.
Overall, this development highlights the growing geopolitical tensions surrounding access to advanced semiconductor technology and the importance of AI in global competition.