The Biden administration has blocked the sale of some of Nvidia's highest-grade microchips in the Middle East due to worries about China attempting to acquire the technology indirectly.
Nvidia, one of the largest chipmakers in the United States, was ordered to seek permission to export specific chips to certain countries in the Middle East, according to a filing reviewed by the Telegraph. The restrictions are part of the United States's efforts to limit Chinese access to the chips required to develop artificial intelligence. It would stop Middle Eastern companies from purchasing the chips only to sell them to Chinese companies to get around Biden's export limits.
The affected chips include the H100 and A100 chips, which are necessary for training and developing software such as OpenAI's ChatGPT. The chips are currently not allowed in China and Russia. Arabia and the United Arab Emirates have spoken with China about improving relationships concerning AI development and have ordered thousands of Nvidia chips.Nvidia previously adjusted its chips so they could be sold to China while abiding by the Commerce Department's requirements.
Biden released an executive order in early August that restricted investments by U.S. companies in Chinese developers. This announcement, alongside nearly a year of export controls of chips, has severely restricted China's access to high-end technology required for military development.
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