(Reuters) – U.S. officials have discussed restricting sales of advanced AI chips from Nvidia (NASDAQ:) and other U.S. companies on a country-specific basis, Bloomberg News reported on Monday, citing people familiar with the matter.
The United States is focused on Persian Gulf countries, the report said, adding that this new approach would put a cap on export licenses for some countries in the interest of national security.
According to Bloomberg, the idea has gained momentum in recent weeks and deliberations are in their early stages and remain fluid.
The US Department of Commerce and Nvidia declined to comment, while Intel (NASDAQ:) and AMD (NASDAQ:) did not immediately respond to Reuters requests for comment.
The Commerce Department last month unveiled a rule that could facilitate the shipment of artificial intelligence chips like Nvidia’s to data centers in the Middle East.
Under this rule, data centers will be able to apply for validated end-user status, which will allow them to receive chips under a blanket authorization, rather than requiring their US suppliers to obtain individual licenses to ship to them.
Last year, the Biden administration announced moves to expand licensing requirements for exports of advanced chips to more than 40 countries, including some in the Middle East, that posed the risk of diversion to China and were subject to U.S. arms embargoes.
