According to Bloomberg News the United States is not keen on Persian Gulf countries getting their paws on Nvidia chips.
This new approach would limit export licenses for some countries in the interest of national security, which could also hurt Nvidia’s ample bottom line.
According to Bloomberg, the idea has gained traction in recent weeks, and deliberations are in the early stages and remain fluid.
Last month, the Commerce Department unveiled a rule that could facilitate the shipments of artificial intelligence chips from Nvidia to data centres in the Middle East.
Under the rule, data centres can apply for a validated end-user status that will allow them to receive chips under a general authorisation rather than require 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 US arms embargoes.