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U.S. DELAYS NVIDIA, AMD AI GPU EXPORT LICENSES TO MIDDLE EAST

News
By Anton Shilov
published May 31, 2024

The UAE and Saudi Arabia are affected

 * 
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 * 
 * 
 * 
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 * 

Comments (3)

(Image credit: Getty Images)


Amid a national security review, the U.S. government has delayed granting export
licenses to designers of advanced processors for AI workloads, such as AMD and
Nvidia, for shipments to the Middle East. The U.S. government is concerned that
GPUs for AI and HPC workloads could be resold to China; accessed by Chinese
entities in the cloud to train large language models; or used to develop
military equipment. 



For obvious reasons, this greatly affects businesses of AMD, Nvidia, and other
developers of similar hardware, reports Bloomberg.



In October, the U.S. Commerce Department imposed new export rules for shipments
of high-performance AI and HPC processors to other countries. The U.S.
government now demands companies like AMD and Nvidia obtain an export license
when they ship reasonably advanced processors to China, Macau, Saudi Arabia,
Vietnam, the United Arab Emirates, and some other countries, including those
from the so-called Group D:5 [PDF]. Recently, license applications from Nvidia,
AMD, Intel, and Cerebras Systems have been delayed or left unanswered.




The U.S. government's strategy includes developing a comprehensive plan for the
deployment of advanced chips overseas. This plan involves ensuring proper
management and security of facilities used to train AI models. While companies
getting processors from AMD, Cerebras, Intel, and Nvidia to equip their
datacenters will not resell valuable hardware to Chinese entities (as this
contradicts their business model), there are concerns about Chinese companies
accessing these processors through Middle Eastern datacenters to train their AI
models or even develop military capability.

LATEST VIDEOS FROM tomshardwareTom's Hardware



The UAE and Saudi Arabia are aiming to diversify their economies from oil by
becoming leaders in AI. Both countries view U.S.-based companies like Cerebras
and Nvidia as crucial partners in this effort. Additionally, Microsoft invested
$1.5 billion in the Abu Dhabi-based AI firm G42.



Saudi Arabia and other Middle Eastern countries have shown willingness to keep
Chinese supply chains separate or divest from Chinese technology entirely. Yet,
Saudi Arabia has partnered with China's Lenovo to establish an R&D center in
Riyadh.


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Anton Shilov
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Freelance News Writer

Anton Shilov is a Freelance News Writer at Tom’s Hardware US. Over the past
couple of decades, he has covered everything from CPUs and GPUs to
supercomputers and from modern process technologies and latest fab tools to
high-tech industry trends.




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See all comments (3)


3 Comments Comment from the forums
 * Vanderlindemedia
   Is the goverment compensating any of these company's in any way with such a
   declaration?
   Reply
 * Notton
   > Vanderlindemedia said:
   > Is the goverment compensating any of these company's in any way with such a
   > declaration?
   
   That is such a bizarre question...
   The government doesn't have to do any compensation because they write the
   laws, grant business licenses, and wield all of the power.
   The most a company can do is sue if they feel if the delay was unjust. Then
   the checks and balances branch of the government, the judicial branch, can do
   a review. Some money can be paid out if the plaintiffs win.
   
   Take for example road repairs. The government doesn't have to pay you
   anything if you are inconvenienced by road closures. However, they may payout
   monetary compensation if you or your vehicle were damaged from neglect.
   Usually those are potholes that were previously reported, but no one went out
   to repair.
   Reply
 * williamcll
   > Vanderlindemedia said:
   > Is the goverment compensating any of these company's in any way with such a
   > declaration?
   
   No, the only value the middle east has in the eyes of the government is oil
   and the development of anything else is a threat to the free world (or at
   least in Israel)
   Reply
 * View All 3 Comments

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