Introduction
In today's increasingly fierce global tech competition, AI chips, as the core components of the artificial intelligence field, are undoubtedly of strategic importance. However, the latest move by the US government has undoubtedly introduced new variables into this area.
US Government Restricts Export of AI Chips
According to reports on May 31, US officials have slowed down the issuance of licenses for chip manufacturers like Nvidia and AMD to export large quantities of AI accelerated computing chips to the Middle East. Behind this decision is the US government's national security assessment of artificial intelligence development in the region.
Stock Price Fluctuations
Following the news, the stock prices of both Nvidia and AMD fell. Nvidia's stock price dropped to its lowest point of the day, closing down 3.8% at $1105 per share. AMD's stock also gave up earlier gains, eventually rising by less than 1% to $166.75.
Importance of AI Accelerated Chips
AI accelerated chips, especially the category pioneered by Nvidia, can help data centers process the vast amount of information needed to develop AI chatbots and other tools. They have become essential equipment for companies and governments building AI infrastructure.
Background of Export Restrictions
In October last year, the US Department of Commerce expanded the scope of chip export restrictions, which were originally aimed at China and a few other foreign adversaries, to most of the Middle East. This means that companies need special permission from the US government to ship cutting-edge semiconductors and chip manufacturing tools to countries such as Saudi Arabia and the United Arab Emirates.
Strategic Considerations of the US Government
US officials have delayed or not responded to license applications submitted under this regulation, with the aim of giving Washington time to formulate a comprehensive strategy around how to deploy advanced chips overseas. This includes negotiating who will manage and protect facilities used to train artificial intelligence models.
Position of the US Department of Commerce
The US Department of Commerce said in a statement that its top priority is to "protect national security." For the most advanced technologies, the United States conducts extensive due diligence through an inter-agency process, thoroughly reviewing the license applications of applicants intending to ship these advanced technologies around the world.
Response of Middle Eastern Countries
The United Arab Emirates and Saudi Arabia have been vying for regional leadership in the field of artificial intelligence, aiming to reduce their economies' dependence on oil. Both countries see the United States as a key partner in this effort and have expressed their willingness to meet US requirements, separating their supply chains from China or completely abandoning Chinese technology.
Conclusion
The move by the US government will undoubtedly have a profound impact on the global AI chip market. Against the backdrop of global tech competition, how to balance national security and technological development will be a challenge that governments and companies around the world must face.
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