New US Export Rules on AI Chips to Middle East

As of October 2023, US exporters must obtain a license before shipping advanced chips to the Middle East and Central Asia.

The new regulation simplifies the process through a 'validated end-user' status, allowing chips to be received under a general authorization rather than requiring individual licenses from authorities.

A US official stated that the country will collaborate with foreign data centers applying for 'validated end-user' certification to ensure the safety and security of the technology.

This move comes amid growing concerns in Washington that the Middle East could serve as a conduit for China to access advanced artificial intelligence chips on the restricted export list.

Central to these concerns is G42, an AI company based in the UAE with historical ties to China. In April, Microsoft announced a $1.5 billion investment in G42 and plans to supply the company with chips and model data to enhance human-like reasoning capabilities in AI models.

The US Department of Commerce stated that data centers applying for the program will undergo a rigorous evaluation process to ensure protective measures are in place to prevent US technology from being diverted or misused against national security.

Alan Estevez, a US Commerce Department official, emphasized the commitment to facilitating international AI development while minimizing risks to US and global security.

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