The huge AI deal between the U.S. and the United Arab Emirates (UAE) is reportedly on maintain earlier than it may be finalized attributable to nationwide safety causes.
The deal, which provides the inexperienced mild to the UAE to purchase billions of {dollars} value of AI chips from Nvidia and different semiconductor firms, is on maintain attributable to considerations within the U.S. that these AI chips may find yourself in China, the Wall Avenue Journal reported, citing nameless sources.
This potential chip smuggling was a priority when the deal was initially fashioned, in keeping with the Wall Avenue Journal, however officers from the UAE and Saudi Arabia assured the U.S. that they had safeguards in place.
Smuggling chips to China has change into extra of a priority in latest months.
The Trump administration is rumored to be contemplating imposing chip export restrictions on Thailand and Malaysia as properly to curb potential smuggling. Malaysia on Monday launched an export allow requirement for U.S. AI chips.
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