- The US government is considering allowing Nvidia to export advanced AI chips to Saudi Arabia, with the kingdom working to meet US security standards.
- Saudi Arabia expects Nvidia’s H200 chips while balancing its ties with the US and China in case of restrictions.
OUR TAKE
The Biden administration’s export controls on AI chips are designed to limit the technological advancement of strategic competitors like China. But now for Saudi Arabia, their efforts to acquire top-tier AI hardware align with its broader goals to diversify its economy and invest heavily in AI and tech development.
–Jennifer YU, BTW reporter
What happened
The US government is considering allowing Nvidia to export advanced AI chips to Saudi Arabia, enabling the kingdom to power state-of-the-art artificial intelligence models, according to the report from Semafor.
While not officially discussed, the sales were a key topic at Saudi Arabia’s Global AI Summit (GAIN). Attendees, including members of the Saudi Data and AI Authority, said the kingdom is working to meet US security requirements to speed up chip acquisition.
Last year, the Biden administration imposed strict export curbs on AI chips to prevent China from accessing them, including licensing requirements for Middle Eastern countries.
Saudi Arabia expects shipments of Nvidia’s advanced H200 chips, first used in OpenAI’s GPT-4. While scaling back ties with Chinese firms, the kingdom remains open to China should the US block access to these chips.
Both Nvidia and the US Department of Commerce declined to comment on specifics.
Also read: Nvidia denies receiving US Justice Department subpoena amid antitrust probe
Also read: Nvidia shares drop 9.5%, leading record market value loss as AI optimism dims
Why it’s important
Allowing Saudi Arabia to acquire advanced AI chips highlights a strategic shift in US export policies and the delicate balance of maintaining alliances in the Middle East while restricting access to China.
Advanced AI chips like Nvidia’s H200 are critical for developing powerful AI models, which have applications in everything from national security to economic growth. Granting Saudi Arabia access to this technology shows the US is willing to strengthen the kingdom’s AI capabilities, provided security requirements are met.
Besides, Nvidia is a leading player in AI hardware, and its chips are essential for training large-scale AI models like OpenAI’s GPT-4. This decision could bolster Nvidia’s market in the Middle East, reinforcing US dominance in the global AI technology sector.
