The US government has expanded its ban on the supply of artificial intelligence (AI) chips produced by Nvidia and Advanced Micro Devices (AMD) to include several Middle Eastern countries, according to a report by Reuters. The ban, which originally targeted exports to China, has been extended to nations in the Middle East. The affected chips, Nvidia’s A100 and AMD’s H100, are designed to enhance machine-learning tasks.
In regulatory filings seen by Reuters, Nvidia stated that it does not expect the restrictions to have an immediate material impact on the company’s financial results. Similarly, AMD, which received a formal letter notifying it of the restrictions, also anticipates no significant impact on its revenue, according to an anonymous source.
The specific Middle Eastern countries affected by the expanded ban have not been disclosed by either Nvidia or AMD. These export restrictions are part of the US Department of Commerce’s efforts to impose tighter controls on the supply of semiconductors used for AI and chip-making tools to China.
The measures were initially introduced in 2015 as a response to the intense competition between the US and China in vital industries, particularly in the realm of semiconductors. China has been trying to catch up to the US in chip development, with its largest chipmaker, SMIC, aiming to reduce reliance on technology from foreign sources.
To cater to the Chinese market, major semiconductor manufacturers like Nvidia, AMD, and Intel have unveiled plans to create less powerful AI chips that can be exported to China. The intention is to comply with the US regulations while still serving the Chinese demand for AI technology.
Nvidia has not provided a specific reason for the latest restrictions in its regulatory filing. However, last year, the company stated that US officials informed them that the exports rule aimed to address the risk of products being used in military applications or diverted to military end-users in China.
By expanding the ban to Middle Eastern countries, the US government hopes to prevent the potential misuse of AI technology for military purposes or by military entities in those regions. The move marks an extension of the US government’s efforts to maintain control over strategic technologies and safeguard national security interests.
In conclusion, the US has widened its ban on the supply of AI chips made by Nvidia and AMD to encompass Middle Eastern countries. Although the chip manufacturers do not expect any immediate adverse effects on their financial performance, the expanded restrictions underline the US government’s concerns regarding the use of AI technology for military purposes in the targeted regions. This move aligns with previous efforts to control the export of essential technologies and protect national security interests.
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