US to Ease AI Chip Export Restrictions, Boosting Saudi Arabia's Access

US to Boost Saudi Access to AI Chips Even as China Issues Linger

The Trump administration is preparing to announce a deal granting Saudi Arabia more access to advanced semiconductors, paving the way for increased data center capacity in the Gulf nation despite concerns from some US officials about its ties to China, according to people familiar with the matter. The agreement would boost Saudi Arabia's ability to buy chips from the likes of Nvidia Corp. and Advanced Micro Devices Inc., which are considered the gold standard for training and running artificial intelligence models, said the people, who asked not to be identified discussing confidential conversations. President Donald Trump is in Riyadh Tuesday, kicking off a broader Middle East trip, and he could announce the deal as soon as this week.

US can curb AI chip risks without halting tech exports, US official says

RIYADH, May 13 (Reuters) - The United States does not need to block the global spread of its AI chips and technology to manage national security risks, a White House official said on Tuesday, signalling a more open stance on exports to trusted allies such as Saudi Arabia. David Sacks, the White House's AI and crypto czar, made his comments in Riyadh days after Washington announced plans to rescind and modify a Biden-era regulation that would limit global access to artificial-intelligence chips. "The Trump administration has just announced that we will be rescinding what's known as the Biden diffusion rule... it literally restricted the diffusion or proliferation of American technology all over the world," Sacks told the Saudi-U.S. Investment Forum at the start of a tour of Gulf states by President Donald Trump. "(Diffusion) is not a risk with a friend like Saudi Arabia at all but I think in general there was a great deal of misunderstanding about the diversion of GPUs," Sacks said, referring to graphics processing units, specialised processors originally created to accelerate graphics rendering. His comments mark a shift from recent curbs on data center tech transfers and reflect growing U.S. interest in deepening tech ties with Middle Eastern partners that are pouring billions into AI infrastructure and aiming to become a hub for the emerging technology outside the United States. "The original reason for this diffusion rule is that we have a policy of not wanting our advanced semiconductors to go to what are known as countries of concern," said Sacks, adding that it was never intended to capture friends, allies and strategic partners. The Framework for Artificial Intelligence Diffusion was issued in January, a week before the end of the administration of former President Joe Biden. It capped a four-year effort by the Biden administration to hobble China's access to advanced chips that could enhance its military capabilities and to maintain U.S. leadership in AI. Trump appointed Sacks in December, in an effort to reshape U.S. policies on digital assets and AI. The new administration's tech backers have generally called for minimal regulation around AI and cryptocurrencies such as bitcoin, saying Washington would throttle growing innovative sectors with excessive rules. The industry has said that by limiting access to the chips, countries will buy the technology from China. Reporting by Federico Maccioni, Yousef Saba, Nafisa Eltahir and Pesha Magid in Riyadh; Writing by Manya Saini, Editing by Timothy Heritage Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:Artificial Intelligence

US' AI Chips To Be More Accessible to Saudi Arabia: Report

The development was reported just a day after Saudi Arabia launched its AI venture, Humain. The U.S. government is 'preparing' to announce a deal with Saudi Arabia, which provides the latter more access to advanced semiconductors, reported Bloomberg on Tuesday, citing sources familiar with the matter. This would improve Saudi Arabia's access to chips from companies like NVIDIA, AMD, and more to aid its booming artificial intelligence ecosystem. On Monday, Humain, an AI venture chaired by Crown Prince Mohammed bin Salman, was launched. The $940 billion Public Investment Fund (PIF) supports the development of AI models, infrastructure, data centres, and more. "The company will also offer one of the world's most powerful multimodal Arabic large language models (LLMs)," read the announcement from PIF. United States President Donald Trump is currently in Riyadh, Saudi Arabia, and the deal could be announced 'as soon as this week.' However, the report also suggested that the United States is 'concerned' about whether China could access the chips sent to Saudi Arabia. This likely stems from earlier reports in which China was accused of illegally acquiring restricted chips through Malaysia and various other indirect methods. The United States government has restricted the export of high-end AI chips from American companies to other countries. Former President Joe Biden also imposed these restrictions. In January, Biden introduced the 'Framework for Artificial Intelligence Diffusion', which categorises nations into three levels according to the security threats they pose to the U.S. These categories dictate the application of export controls. The first category encompasses 17 countries plus Taiwan, all of which can acquire unlimited AI chips. The second category includes approximately 120 countries, such as Saudi Arabia, where access to chips is restricted. Exports to the third category, which includes countries like China, Russia, Iran, and North Korea, are severely restricted. Companies can import up to 1,700 GPUs, valued at around $40-50 million, without needing a licence, to countries classified in the 'Tier 2' bracket. Larger imports, worth up to $1 billion, will require a licence review. However, Bloomberg reported that the Trump administration plans to remove the tier-based system to control exports. "The Biden AI rule is overly complex, overly bureaucratic, and would stymie American innovation," the Commerce spokeswoman said. "We will be replacing it with a much simpler rule that unleashes American innovation and ensures American AI dominance," she added. Changes to the rule may be announced as early as Thursday, added the report.

US can curb AI chip risks without halting tech exports, US official says

A White House official signaled openness to AI chip exports, stating national security doesn't require blocking global diffusion. Speaking in Riyadh, he emphasised trusted allies like Saudi Arabia aren't risks. This marks a shift from Biden-era restrictions, reflecting stronger US tech ties with Gulf nations.The United States does not need to block the global spread of its AI chips and technology to manage national security risks, a White House official said on Tuesday, signalling a more open stance on exports to trusted allies such as Saudi Arabia. David Sacks, the White House's AI and crypto czar, made his comments in Riyadh days after Washington announced plans to rescind and modify a Biden-era regulation that would limit global access to artificial-intelligence chips. "The Trump administration has just announced that we will be rescinding what's known as the Biden diffusion rule... it literally restricted the diffusion or proliferation of American technology all over the world," Sacks told the Saudi-U.S. Investment Forum at the start of a tour of Gulf states by President Donald Trump. "(Diffusion) is not a risk with a friend like Saudi Arabia at all but I think in general there was a great deal of misunderstanding about the diversion of GPUs," Sacks said, referring to graphics processing units, specialised processors originally created to accelerate graphics rendering. His comments mark a shift from recent curbs on data center tech transfers and reflect growing U.S. interest in deepening tech ties with Middle Eastern partners that are pouring billions into AI infrastructure and aiming to become a hub for the emerging technology outside the United States. "The original reason for this diffusion rule is that we have a policy of not wanting our advanced semiconductors to go to what are known as countries of concern," said Sacks, adding that it was never intended to capture friends, allies and strategic partners. The Framework for Artificial Intelligence Diffusion was issued in January, a week before the end of the administration of former President Joe Biden. It capped a four-year effort by the Biden administration to hobble China's access to advanced chips that could enhance its military capabilities and to maintain U.S. leadership in AI. Trump appointed Sacks in December, in an effort to reshape U.S. policies on digital assets and AI. The new administration's tech backers have generally called for minimal regulation around AI and cryptocurrencies such as bitcoin, saying Washington would throttle growing innovative sectors with excessive rules. The industry has said that by limiting access to the chips, countries will buy the technology from China.

US can curb AI chip risks without halting tech exports, US official says

RIYADH (Reuters) -The United States does not need to block the global spread of its AI chips and technology to manage national security risks, a White House official said on Tuesday, signalling a more open stance on exports to trusted allies such as Saudi Arabia. David Sacks, the White House's AI and crypto czar, made his comments in Riyadh days after Washington announced plans to rescind and modify a Biden-era regulation that would limit global access to artificial-intelligence chips. "The Trump administration has just announced that we will be rescinding what's known as the Biden diffusion rule... it literally restricted the diffusion or proliferation of American technology all over the world," Sacks told the Saudi-U.S. Investment Forum at the start of a tour of Gulf states by President Donald Trump. "(Diffusion) is not a risk with a friend like Saudi Arabia at all but I think in general there was a great deal of misunderstanding about the diversion of GPUs," Sacks said, referring to graphics processing units, specialised processors originally created to accelerate graphics rendering. His comments mark a shift from recent curbs on data center tech transfers and reflect growing U.S. interest in deepening tech ties with Middle Eastern partners that are pouring billions into AI infrastructure and aiming to become a hub for the emerging technology outside the United States. "The original reason for this diffusion rule is that we have a policy of not wanting our advanced semiconductors to go to what are known as countries of concern," said Sacks, adding that it was never intended to capture friends, allies and strategic partners. The Framework for Artificial Intelligence Diffusion was issued in January, a week before the end of the administration of former President Joe Biden. It capped a four-year effort by the Biden administration to hobble China's access to advanced chips that could enhance its military capabilities and to maintain U.S. leadership in AI. Trump appointed Sacks in December, in an effort to reshape U.S. policies on digital assets and AI. The new administration's tech backers have generally called for minimal regulation around AI and cryptocurrencies such as bitcoin, saying Washington would throttle growing innovative sectors with excessive rules. The industry has said that by limiting access to the chips, countries will buy the technology from China. (Reporting by Federico Maccioni, Yousef Saba, Nafisa Eltahir and Pesha Magid in Riyadh; Writing by Manya Saini, Editing by Timothy Heritage)