Trump Administration Opens Doors for AI Chip Exports to Gulf Economies

Published 1 hours agoNVDA

Trump Administration Opens Doors for AI Chip Exports to Gulf Economies

The Trump administration has taken a strategic step by reversing previous export restrictions on AI chips imposed during the Biden era. This move aims to enhance technological and economic ties between the U.S. and Gulf countries, particularly Saudi Arabia and the UAE. The policy shift is seen as a crucial aspect of the administration's recent initiatives to support Gulf states in their technological advancements, AP News reports.

In a significant development, Nvidia has agreed to supply hundreds of thousands of AI chips to Saudi Arabia as part of major AI deals announced during President Trump's visit to the Middle East. Additionally, AMD has entered a substantial $10 billion partnership with the Saudi-backed AI company Humain to build a 500-megawatt AI computing infrastructure. Reuters highlighted these developments as pivotal for bolstering Saudi Arabia's AI capabilities. Meanwhile, the U.S. is on the verge of finalizing an agreement with the UAE which would permit the import of 500,000 Nvidia AI chips annually starting 2025.

Saudi Arabia has shown a strong interest in strengthening its investment in American technology, pledging $600 billion, including significant investments in military and technology sectors. However, this expanded cooperation has faced criticism, as some experts express concerns over potential national security implications. They warn that such exports might undermine the U.S.'s leadership in AI and inadvertently support regimes with authoritarian leanings, according to Time Magazine.

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