Technology

US regulators confirm no export restrictions on AI chip shipments to the Middle East.

US regulators confirm no blockage of AI chip exports to the Middle East,

as stated by the United States Department of Commerce on August 31, according to Reuters.

This clarification follows disclosures in a Nvidia report that export license requirements for artificial intelligence (AI) chips had been expanded by the US government.

Similar to Nvidia, Advanced Micro Devices (AMD), a direct competitor,

also received a letter from regulators regarding the new requirements.

The Department of Commerce did not specify which US companies were affected by these rules.

However, the filing suggests that both Nvidia and AMD would need licenses to sell flagship chips to “some Middle Eastern countries.”

It remains undisclosed whether Nvidia and AMD have applied for these licenses or received any feedback regarding licensing for the region.

Nvidia’s Concerns Over Exclusion from Chinese Market Amid US Export Controls and Global Regulatory Response

Nvidia’s quarterly report voiced concerns that excluding the company from the Chinese market could potentially harm its long-term results.

This warning comes after the Biden administration initiated export controls in October 2022,

aiming to limit China’s development of advanced AI systems utilizing powerful semiconductor chips from US companies.

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In a statement on June 29, US officials indicated their consideration of further tightening regulations,

which would impose additional constraints on the computing power of chips available in the Chinese market.

The actions taken by the US government have garnered attention from regulators worldwide.

The United States reached agreements with the Netherlands and Japan to restrict the export of semiconductor manufacturing equipment to China, following the initial US regulations.

Furthermore, officials in the United Kingdom, France,

and Germany have openly discussed the possibility of screening Chinese foreign direct investment in critical sectors like AI.

In response, China has announced plans to control the export of gallium and germanium products,

which are essential raw materials for AI chip production.

This move suggests a strategic response to the ongoing regulatory developments.

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