The US government has imposed restrictions on the export of some Nvidia chips for artificial intelligence applications to some Middle Eastern countries. In a regulatory filing dated August 28, the chipmaker said the government had notified it of additional licensing requirements for some of its A100 and H100 products, “including certain countries in the Middle East.” It was not clear which countries were affected. AMD received similar instructions.
Neither Nvidia nor US representatives could initially be reached for comment on Wednesday. A year ago, Nvidia announced that the United States had called for a ban on exports of the same two chip models to China. This was seen as an attempt to slow down Chinese companies in the field of artificial intelligence, such as image recognition. Nvidia generated most of its $13.5 billion in revenue in its most recent fiscal quarter in the United States, China and Taiwan. About 13.9 percent came from all other countries combined. Middle East sales are not broken down separately.
In addition to chip manufacturer Nvidia, rival Advanced Micro Devices (AMD) also appears to have been affected by recent US restrictions on exports of some AI chips to the Middle East. AMD also received a similar information letter from the US government that included similar restrictions, a person familiar with the matter told Reuters news agency on Wednesday. This step is not expected to have a significant impact on the company’s revenues.
Nvidia previously said it had received notification from the government of additional licensing requirements for some of its A100 and H100 products, “including some countries in the Middle East.” The document did not mention who these countries were. In a separate statement, Nvidia said the new licensing claim “does not impact a significant portion of our revenue. We are working with the US government to resolve this issue.”
US authorities usually impose export controls for reasons of national security. A similar move last year signaled escalating crackdowns on China’s technological capabilities, but it was not immediately clear what the risks were regarding exports to the Middle East. The US Commerce Department did not immediately respond to a request for comment.
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