The Biden administration has imposed restrictions on the sale of Nvidia's key microchips to the Middle East due to growing concerns about China's access to critical artificial intelligence (AI) resources. Nvidia, valued at $1.2 trillion, has been directed to obtain permission before exporting certain chips to specific countries in the Middle East, as part of the US government's efforts to strengthen national security measures on advanced semiconductors.
Biden has blocked sale of Nvidia, $NVDA, AI chips to Middle East over China fears
8/30/2023
These restrictions are an extension of the United States' strategy to counter China's AI ambitions. The move is aimed at preventing the chips from being resold to China and minimizing connections between Middle East entities and Chinese AI firms. Nvidia's H100 and A100 chips are pivotal for training software like ChatGPT and are pivotal in the global competition for computing power in the realm of AI.
While these chips are already subject to limitations in sales to China and Russia, this recent action signifies a significant broadening of US trade controls beyond these countries. The affected nations in the Middle East have not been specifically disclosed by Nvidia, which revealed the restrictions in a US regulatory filing.
Both Saudi Arabia and the United Arab Emirates have been engaged in discussions with China to strengthen AI collaborations, and they have placed substantial orders for Nvidia's chips. Chinese researchers are actively involved in institutions like King Abdullah University of Science and Technology (Kaust) in Saudi Arabia.
Moreover, the US government has previously identified the UAE as a potential intermediary used by Russia to evade sanctions. The US sanctions regime already prohibits sales to Iran and Syria.
Nvidia acknowledged these new restrictions in a US filing, indicating that during the second quarter of fiscal year 2024, the US government informed the company of additional licensing requirements for a subset of A100 and H100 products destined for specific customers and regions, including certain Middle Eastern countries.
The Department of Homeland Security is considering the creation of a television show in which migrants would compete for potential U.S. citizenship
5/21/2025 1:53 AMU.S. Senate unanimously passes the No Tax on Tips Act
5/21/2025 1:49 AMInvestors now own 30% of metro Atlanta’s single-family rental homes
5/20/2025 9:23 PMMajority of Canadians feel unwelcome and unsafe travelling to United States
5/20/2025 8:48 PM
Stay Updated
Subscribe to our newsletter for the latest financial insights and news.
+With Unusual Whales
Get the best broker for options trading and earn Unusual Whales discounted! in cash with an eligible account deposit at tastytrade. Get an Unusual Whales bonus when you deposit $2000. Offer expires 3/31/25. Certain restrictions, terms and conditions apply.
Unusual Whales does not confirm the information's truthfulness or accuracy of the associated references, data, and cannot verify any of the information. Any content on this site or related pages are not intended to provide legal, tax, investment or insurance advice. Unusual Whales Inc. is not registered as a securities broker-dealer or an investment adviser with the U.S. Securities and Exchange Commission, the Financial Industry Regulatory Authority (“FINRA”) or any state securities regulatory authority. Nothing on Unusual Whales should be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any security by Unusual Whales or any third party. Options, investing, trading is risky, and losses are more expected than profits. Please do own research before investing. Please only subscribe after reading our full terms and understanding options and the market, and the inherent risks of trading. It is highly recommended not to trade on this, or any, information from Unusual Whales. Markets are risky, and you will likely lose some or all of your capital. Please check our terms for full details.
Any content on this site or related pages are not intended to provide legal, tax, investment or insurance advice. Unusual Whales Inc. is not registered as a securities broker-dealer or an investment adviser with the U.S. Securities and Exchange Commission, the Financial Industry Regulatory Authority (“FINRA”) or any state securities regulatory authority. Nothing on Unusual Whales should be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any security by Unusual Whales or any third party. Certain investment planning tools available on Unusual Whales may provide general investment education based on your input. You are solely responsible for determining whether any investment, investment strategy, security or related transaction is appropriate for you based on your personal investment objectives, financial circumstances and risk tolerance. You should consult your legal or tax professional regarding your specific situation. See terms for more information.