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UAE’s deal to buy Nvidia AI chips reportedly on hold
The massive AI deal between the United States and the United Arab Emirates (UAE) has been put on hold due to national security concerns. The agreement, which would have allowed the UAE to purchase billions of dollars’ worth of AI chips from Nvidia and other semiconductor companies, is currently stalled as officials weigh the potential risks.
According to a report by the Wall Street Journal, citing anonymous sources, the United States is concerned that these AI chips could end up in China. This fear has become increasingly relevant in recent months, as chip export restrictions are being considered for countries such as Thailand and Malaysia. In fact, Malaysia has recently introduced an export permit requirement for U.S. AI chips.
Initially, officials from the UAE and Saudi Arabia assured the United States that they had safeguards in place to prevent the smuggling of these high-tech components. However, it appears that these assurances have not alleviated concerns within the administration.
The potential implications of this deal being put on hold are significant. Not only would it impact the financial interests of companies like Nvidia, but it could also hinder the development and advancement of AI technology in the region.
The news comes at a time when the global AI industry is already facing headwinds due to the ongoing pandemic and supply chain disruptions. This development only serves to further complicate the situation.
As we continue to monitor this story, one thing is clear: the global implications of these AI chips are far-reaching, and any decision made will have significant consequences for businesses, governments, and individuals alike.
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Source: techcrunch.com
