US delays AI chip exports to Middle East by Nvidia, AMD over concern that China can access the tech via data centres

US officials have slowed the issuing of licences to chip makers such as Nvidia and Advanced Micro Devices for large-scale artificial intelligence (AI) accelerator shipments to the Middle East, according to people familiar with the matter, while officials conduct a national security review of AI development in the region.

It is unclear how long the review will take, nor is there a concrete definition of what constitutes a large shipment, said the people, who asked not to be identified because the discussions are private.

Officials are particularly focused on high-volume sales, the people said, as countries including the United Arab Emirates (UAE) and Saudi Arabia look to import massive quantities of the chips used in AI data centres.

AI accelerators – a category pioneered by Nvidia – help data centres process the flood of information needed to develop AI chatbots and other tools. They have become essential equipment for companies and governments seeking to build an AI infrastructure.

In October, the Commerce Department added much of the Middle East to chip export restrictions that originally focused on China and a handful of other foreign adversaries. That meant companies needed a special US government licence to ship cutting-edge semiconductors and chip-making tools to countries such as Saudi Arabia and the UAE.

US officials have delayed or not responded to licence applications submitted under that rule in the past several weeks, some of the people said. That includes attempts to sell to customers in the UAE, Saudi Arabia and Qatar, according to one of the people.

In addition to Nvidia and AMD, Intel and start-up Cerebras Systems also make accelerator chips. The four companies declined to comment.