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US mulls capping Nvidia AI chips exports to some countries, Bloomberg News reports
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US mulls capping Nvidia AI chips exports to some countries, Bloomberg News reports
Oct 17, 2024 12:31 PM

Oct 14 (Reuters) - U.S. officials have discussed

limiting sales of advanced AI chips from Nvidia ( NVDA ) and

other American companies on a country-specific basis, Bloomberg

News reported on Monday, citing people familiar with the matter.

The United States is focused on Persian Gulf countries, the

report said, adding that this new approach would set a ceiling

on export licenses for some countries in the interest of

national security.

The idea has gained traction in recent weeks and

deliberations are in early stages and remain fluid, according to

Bloomberg.

The U.S. Commerce Department and Nvidia ( NVDA ) declined to comment,

while Intel ( INTC ) and AMD did not immediately respond to Reuters'

requests for comment.

The Commerce Department unveiled a rule last month that

could ease shipments of artificial intelligence chips like those

from Nvidia ( NVDA ) to data centers in the Middle East.

Under the rule, data centers will be able to apply for

Validated End User status that will allow them to receive chips

under a general authorization, rather than requiring their U.S.

suppliers to obtain individual licenses to ship to them.

Last year, the Biden administration announced measures to

expand licensing requirements for exports of advanced chips to

more than 40 countries, including some in the Middle East, that

presented risks of diversion to China and were subject to U.S.

arms embargoes.

(Reporting by Shivani Tanna in Bengaluru; Editing by Alan

Barona and Subhranshu Sahu)

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