The Joe Biden administration is reportedly considering restricting the export of advanced AI chips from Nvidia Corporation NVDA and Advanced Micro Devices Inc. AMD to specific countries.
What Happened: The proposal which hasn't been finalized yet aims to limit the AI capabilities of certain nations, citing national security concerns, with a focus on Persian Gulf countries, reported Bloomberg, citing people familiar with the matter.
The development comes following the introduction of the framework that intends to streamline the licensing process for AI chip shipments to data centers in regions such as the UAE and Saudi Arabia.
If finalized, these caps would strengthen restrictions initially aimed at curbing China's ambitions in AI.
The Biden administration has already limited AI chip exports from companies such as Nvidia and AMD to over 40 nations across the Middle East, Africa, and Asia due to concerns that the technology could be redirected to China.
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Why It Matters: Previously, it was reported that despite U.S. semiconductor sanctions, Nvidia’s AI chips continue to find their way into Chinese markets through smuggling and other channels.
Meanwhile, China has pushed for local AI chips including those made by companies like Huawei Technologies, in retaliation against the U.S. sanctions. These efforts could impact Nvidia's GPU sales.
On Monday, Nvidia's stock reached an all-time high. The stock climbed 2.9%, surpassing $138.71, after its prior record close of $135.58 set in June.
The AI chip giant currently has a market cap of $ 3.386, making it the second most valuable company in the world after Apple Inc.
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