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UAE’s deal to buy Nvidia AI chips reportedly on hold
The massive AI deal between the U.S. and the United Arab Emirates (UAE) is reportedly on hold before it can be finalized due to national security reasons. The deal, which grants the green light to the UAE to purchase billions of dollars’ worth of AI chips from Nvidia and other semiconductor companies, has been put on hold due to concerns in the U.S. that these AI chips could end up in China.
According to anonymous sources cited by the Wall Street Journal, officials from the UAE and Saudi Arabia had initially assured the U.S. that they had safeguards in place to prevent any potential chip smuggling. However, these concerns have resurfaced with the growing importance of artificial intelligence (AI) technology worldwide.
The U.S. has been increasingly vigilant about preventing the export of AI technology to China due to fears that it could be used for military purposes or compromise national security. The Trump administration is also rumored to be considering imposing chip export restrictions on Thailand and Malaysia in a bid to curb potential smuggling.
It’s worth noting that the UAE’s deal with Nvidia is not the only one affected by these concerns. Malaysia recently introduced an export permit requirement for U.S. AI chips, signaling a growing shift towards stricter regulations in the industry.
The development has significant implications for both parties involved. The proposed deal would have marked a major milestone in the collaboration between the U.S. and UAE in the field of AI research and development. However, its delay or potential cancellation could lead to unforeseen consequences, particularly in light of the current global economic landscape.
For further updates on this developing story, please stay tuned with us.
Source: techcrunch.com
