THE US Commerce Department on Monday (Sep 30) unveiled a rule that could ease shipments of artificial intelligence chips to data centres in the Middle East.
Since October 2023, US exporters have been required to obtain licences before shipping advanced chips to parts of the Middle East and Central Asia.
Under the new rule, data centres will be able to apply for Validated End User status that will allow them to receive chips under a general authorisation, rather than requiring their US suppliers to obtain individual licences to ship to them.
The US will work with foreign data centres that apply for the Validated End User programme as well as host governments to ensure the safety and security of the technology, a US official said.
The move comes amid growing concerns in Washington that the Middle East could become a conduit for China to obtain advanced American chips that are barred from being shipped directly to China.
G42, a UAE-based AI company with historic ties to China, has been a focus of those concerns. In April, Microsoft announced it would invest US$1.5 billion in the company, and that it planned to provide G42 with chips and model weights, sophisticated data that improves an AI model’s ability to emulate human reasoning.
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The deal drew scrutiny from China hardliners in Congress, even though G42 said in February it had divested from China and was accepting constraints imposed on it by the US to work with American companies.
G42, which owns data centres, did not immediately respond to a request for comment.
Data centres which apply for the programme will undergo a rigorous review process to make sure safeguards are in place to keep US technology from being diverted or used in ways contrary to national security, the Commerce Department said in a statement.
The agency’s Bureau of Industry and Security “is committed to facilitating international AI development while mitigating risks to US and global security,” Alan Estevez, a Commerce official, said in the statement. REUTERS
