TLDR:
- U.S. officials discussing capping AI chip exports to certain countries
- Focus is on Persian Gulf nations with growing AI data center demand
- Caps would build on existing export control framework
- Concerns include potential misuse for surveillance and intelligence risks
- Move could impact sales for companies like Nvidia and AMD
The Biden administration is reportedly considering a new approach to regulating the export of advanced artificial intelligence (AI) chips. According to recent reports, U.S. officials have been discussing the possibility of implementing country-specific caps on the sale of AI chips from American companies like Nvidia and AMD to certain nations.
These discussions are said to be in the early stages and remain fluid, but they represent a potential expansion of existing export controls. The focus appears to be primarily on Persian Gulf countries that have shown a growing appetite for AI data centers and have the financial resources to invest heavily in this technology.
The proposed policy would build upon a framework introduced last month by the Commerce Department to streamline the licensing process for AI chip shipments to data centers in countries like the United Arab Emirates and Saudi Arabia. Under this new approach, a ceiling would be set on export licenses for specific countries, with national security concerns being the primary motivating factor.
Officials are reportedly considering this measure as a way to limit some nations’ AI capabilities while maintaining U.S. technological leadership. The talks reflect growing concerns about the potential misuse of advanced AI technologies, particularly in countries with robust internal surveillance systems.
While the deliberations are ongoing, the implications for major chip manufacturers like Nvidia and AMD could be significant. Nvidia, in particular, has become the market leader for AI chips and has benefited greatly from the global AI boom.
The company’s CEO, Jensen Huang, has noted that the quest for “sovereign AI” – the ability for countries to build and run their own AI systems – has become a key driver of demand for advanced processors.

The potential new restrictions come on the heels of existing export controls that have already limited AI chip shipments to more than 40 countries across the Middle East, Africa, and Asia. These measures were initially aimed at curbing China’s AI ambitions but have since evolved to address broader global security concerns.
U.S. officials are reportedly weighing the benefits of restricting AI chip exports against the risk of pushing other countries towards alternative suppliers, particularly if China manages to develop competitive chip technology in the future. This balancing act reflects the complex geopolitical considerations surrounding advanced technologies.
The Commerce Department’s Bureau of Industry and Security, which oversees export controls, has declined to comment on these discussions. Similarly, major chip manufacturers like Nvidia, AMD, and Intel have either declined to comment or not responded to inquiries about the potential new restrictions.
As discussions continue, it remains to be seen how the administration will navigate the diplomatic challenges of implementing country-specific caps on AI chip exports. The move could test U.S. relationships with key allies and partners, particularly in the Middle East.
Stay Ahead of the Market with Benzinga Pro!
Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders:
- Breaking market-moving stories before they hit mainstream media
- Live audio squawk for hands-free market updates
- Advanced stock scanner to spot promising trades
- Expert trade ideas and on-demand support