The large AI deal between the U.S. and the United Arab Emirates (UAE) is reportedly on maintain earlier than it may be finalized as a result of nationwide safety causes.
The deal, which provides the inexperienced mild to the UAE to purchase billions of {dollars}’ price of AI chips from Nvidia and different semiconductor corporations, is on maintain as a result of considerations within the U.S. that these AI chips might find yourself in China, The Wall Street Journal reported, citing nameless sources.
This potential chip smuggling was a priority when the deal was initially fashioned, according to The Wall Street Journal, however officers from the UAE and Saudi Arabia assured the U.S. they’d safeguards in place.
Smuggling chips to China has grow to be extra of a priority in current 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 introduced an export permit requirement for U.S. AI chips.