U.S. restricts exports of Nvidia, AMD AI chips to some Middle East countries
- August 31, 2023
- Posted by: Quatro Strategies
- Categories: AI & Semiconductors, Middle East, Sanctions & Regulation, United States
The United States has expanded export restrictions on artificial intelligence (AI) chips produced by companies like Nvidia and Advanced Micro Devices (AMD), extending the controls beyond China to include certain countries in the Middle East. These restrictions, aimed at national security concerns, affect AI chips designed for machine-learning tasks, particularly Nvidia’s A100 and H100 chips.
Nvidia stated that these new restrictions would not have an “immediate material impact” on its financial results, and AMD similarly noted that the move has no significant impact on its revenue. Last year, both companies disclosed plans to create less powerful AI chips that could be exported to the Chinese market, as part of efforts to navigate the evolving regulatory landscape.
The U.S. Commerce Department, responsible for administering new export licensing requirements, has not provided specific details regarding the reasoning behind these expanded restrictions. The decision has sparked discussions about potential risks posed by AI chip exports to the Middle East, although specific concerns have not been outlined.
The broader context of export controls on technology reflects growing tensions between the U.S. and China, particularly in areas related to national security and technological competition. The restrictions on AI chips have implications for various applications, including consumer devices like smartphones and military applications such as satellite image analysis and communication monitoring.
The expansion of export controls on AI chips underscores the intricate interplay between technology, geopolitics, and security concerns in today’s interconnected global economy.
Interested in learning more?
Sign up for Top Insights Today
Top Insights Today delivers the latest insights straight to your inbox.
You will get daily industry insights on
Oil & Gas, Rare Earths & Commodities, Mining & Metals, EVs & Battery Technology, ESG & Renewable Energy, AI & Semiconductors, Aerospace & Defense, Sanctions & Regulation, Business & Politics.
Read more insights
FDI in China drops $13 billion amid geopolitical tensions and economic uncertainty
Foreign direct investment (FDI) in China saw a significant decline in the third quarter, with a drop of $8.1 billion in liabilities, signaling continued investor pessimism despite Beijing’s attempts to stabilize growth through stimulus measures. This marks a continued slump in foreign investment into China, which had already been…
Nickel surges as Indonesia signals tighter ore supply
Nickel has ripped higher on the view that Indonesia, the swing factor in global nickel, may finally be prepared to restrain the ore flow that has flooded the market and crushed prices over the last two years. LME three-month nickel has rebounded sharply from December lows to levels not seen since 2022 after Indonesian officials indicated they intend to reduce annual mining permits.
The core catalyst is Jakarta’s stated plan to lower 2026 mining permit volumes to roughly 250-260 million wet tons of ore, down from a headline 379 million wet tons in 2025. Given Indonesia’s outsize role, now the dominant source of global nickel units, any hint that policy is shifting from maximal growth to managed growth will be amplified through price.
EU drafts plan to let overseas offsets count toward emissions goals
The European Commission is preparing to allow carbon credits purchased from outside the EU to count toward the bloc’s upcoming 2040 climate objectives. The Commission is expected to unveil a new legally binding emissions target for 2040 on July 2. While initial discussions centered around a 90% reduction in net emissions from 1990 levels, Brussels has been under mounting pressure to water down or soften the target.
Countries such as Italy, Poland and the Czech Republic have argued that the original proposal would place an overwhelming financial burden on their economies, especially at a time when many are juggling costly commitments to defense, social welfare and industrial competitiveness.