The US government is considering imposing caps on exports of advanced artificial intelligence (AI) chips to specific countries, reports Bloomberg, citing sources.
This move is part of a broader strategy to manage national security risks associated with the proliferation of AI technology, the sources said.
Officials are said to be focusing on Persian Gulf nations, which are increasingly investing in AI data centres.
The discussions, which are still in the preliminary stages, suggest that the US may establish a ceiling on export licenses for certain nations for AI chips developed by NVIDIA and other US chip companies such as AMD and Intel.
This policy would build upon a new framework designed to streamline the licensing process for AI chip shipments to data centres in countries such as the United Arab Emirates and Saudi Arabia.
Last month, the Commerce Department announced regulations to facilitate this process and indicated that additional rules are forthcoming.
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The Bureau of Industry and Security at the Commerce Department, responsible for export controls, did not comment on the matter.
Similarly, both NVIDIA and AMD declined to comment.
Intel, another key player in AI chip production, also did not respond to requests for comment.
A spokesperson for the White House National Security Council also declined to comment on the discussions but referenced a joint statement with the UAE highlighting the potential benefits and risks of AI.
The proposed caps would extend restrictions initially aimed at curbing China’s AI ambitions, as the US evaluates the security implications of AI development globally.
The Biden administration has already limited AI chip exports by companies like NVIDIA and AMD to over forty countries across the Middle East, Africa, and Asia, due to concerns that these products could be diverted to China.
US officials are also considering using semiconductor export licenses as a diplomatic tool, potentially influencing companies to reduce their ties with China in exchange for access to US technology.
However, the effectiveness of this strategy remains uncertain, particularly as China continues to advance its own semiconductor capabilities.
The potential implementation of country-based caps on AI chip exports raises questions about enforceability and the impact on US diplomatic relations.
With the global race for sovereign AI intensifying, the demand for advanced processors is surging.
NVIDIA CEO Jensen Huang has noted this trend, while US officials worry that if companies like Huawei develop competitive alternatives to US chips, it could diminish America’s influence over the AI landscape.
While some US officials advocate for a more restrictive export policy given the current leverage, others caution against alienating potential customers should China’s semiconductor industry catch up.
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