On October 15, 2024, reports emerged that U.S. officials are contemplating limitations on the sale of advanced AI chips from companies such as Nvidia to specific countries, particularly in the Persian Gulf region. This initiative aims to establish export license ceilings for certain nations, citing national security interests.
The discussions are in preliminary stages and remain subject to change, according to sources familiar with the matter. The U.S. Commerce Department has previously introduced a rule that could facilitate the shipment of AI chips to data centers in the Middle East, allowing these facilities to apply for a Validated End User status. This status would enable them to receive chips under a general authorization, bypassing the need for individual licenses from U.S. suppliers.
Last year, the Biden administration expanded licensing requirements for advanced chip exports to over 40 countries, including those in the Middle East, due to concerns about potential diversion to China and existing U.S. arms embargoes.