The Biden administration has privately discussed capping sales of advanced AI chips from Nvidia and AMD to certain Persian Gulf countries in the interest of national security, Bloomberg reported on Monday. The restriction could put a ceiling on export licenses for certain countries, potentially Saudi Arabia and the United Arab Emirates, which are heavily investing in AI data centers.

The White House increasingly views American AI chips as a key advantage on the global stage. Last year, the United States banned the sale of Nvidia's and AMD's advanced AI chips to China, and placed export restrictions on 40 other countries around the globe to close loopholes where AI chips could indirectly get to China.

The latest reported discussions could indicate that U.S. officials are worried about the Persian Gulf's global influence over the AI industry. This year, Saudi Arabia reportedly planned to launch a $40 billion fund to invest in AI technology, while OpenAI reportedly held discussions with a UAE-backed investment fund over participating in its latest $6.6 billion funding round.

This article originally appeared on TechCrunch at https://techcrunch.com/2024/10/15/white-house-considers-expanding-nvidia-and-amds-ai-chip-export-limits-to-additional-countries/