US modifies AI chip export rules, boosting Middle East access

Concerns over the potential misuse of these technologies, particularly the risk of them being funneled to China through third-party countries, have driven these export controls.

“Through the VEU program, we will collaborate with foreign data centers and their respective governments to ensure that US technology is safeguarded from misuse,” the statement added.

The move is seen as a response to growing pressure from US companies, especially in the AI chip sector. The rule, however, provides a clear pathway for data centers to access advanced AI chips more efficiently while addressing security concerns raised by US lawmakers.

Nvidia declined to comment on this matter.

Addressing the concerns

One major concern in Washington is the possibility that AI technology could find its way to China via third-party entities in the Middle East. G42, a UAE-based AI company with former ties to China, has been under scrutiny.

Despite its claims of severing Chinese connections and complying with US restrictions, the company’s $1.5 billion deal with Microsoft earlier this year raised alarms, especially among China hawks in Congress.