In a recent announcement, leading US technology firm Nvidia revealed that the US government was imposing restrictions on the export of its most advanced computer chips to “some Middle Eastern countries”. Although the specific countries were not disclosed, this move has raised concerns about the emergence of a “tech war” between the US and China in the Middle East.
The US has been competing with China in the development of artificial intelligence (AI) technology, and one tactic to slow China’s progress has been restricting its access to computer chips required for advanced AI models. These chips are primarily produced by US-based companies, including Nvidia.
Last year, the US Department of Commerce imposed export restrictions on advanced chips to China and Russia. The recent announcement adds another layer to these restrictions, with Middle Eastern countries coming under scrutiny.
While the US government and Nvidia have not named the affected countries, experts suggest that Iran, Saudi Arabia, and the UAE are likely candidates due to their growing investments in AI and potential national security concerns.
The Gulf states, including Saudi Arabia, the UAE, and Qatar, are heavily investing in AI as part of their efforts to diversify their economies away from oil dependence. Israel is also making significant AI investments, and several advanced chip manufacturers operate in the country.
The US government’s decision to control chip exports to the Middle East is rooted in concerns about AI’s role in military modernization and human rights abuses. Additionally, the presence of Chinese tech firms like Huawei in the Middle East has raised concerns about circumventing restrictions.
The Middle East has deepened its ties with China in recent years, with Saudi Arabia and the UAE fostering scientific cooperation. Students and teachers from China are active at the King Abdullah University of Science and Technology (KAUST), where Nvidia’s advanced H100 chips are expected to be deployed.
While the US does not necessarily believe that Middle Eastern countries will intentionally deliver technology to China and Russia, concerns revolve around the exposure of Nvidia chips to espionage, reverse engineering, or unintentional transfer to these countries due to their presence in Gulf nations.
Israel also has growing connections with China, and US tech companies have used their Israeli bases as a workaround to continue exporting chips to China. However, Israel’s position is being closely monitored by the US.
The export restrictions on chips may impact Nvidia in Israel, as US export rules apply to products resulting from US technology, regardless of where they are manufactured.
Human rights concerns also play a role in the export ban, with the US emphasizing the importance of “Democratic AI” and concerns about authoritarian states using AI for repression.
Experts suggest that these controls convey the seriousness of the US in tech competition with China to its Gulf partners and may impact relations between democracies and autocracies regarding emerging technology. AI could become a source of friction between democratic and autocratic states in the future.
