The Biden administration is contemplating extending export restrictions on advanced AI chips, produced by Nvidia and AMD, to include several Persian Gulf countries, as outlined by recent reports from Bloomberg. These discussions aim to impose limitations on the export licenses available for nations, potentially targeting Saudi Arabia and the United Arab Emirates.

This move underscores national security concerns given these countries' substantial investments in advancing their AI data center capabilities. The White House increasingly recognizes the strategic importance of American AI chips, viewing them as a crucial asset in maintaining technological leadership on the international stage. Last year, the U.S. imposed a ban on the sale of high-performance AI chips to China and, in the process, enforced similar restrictions on 40 additional countries.

These measures aimed to prevent the indirect transfer of these sophisticated chips to China, thereby plugging potential loopholes. The current deliberations suggest a growing apprehension within U.S. government circles regarding the growing influence of Persian Gulf states in the AI sector. Notably, Saudi Arabia had announced intentions to establish a $40 billion fund for investment in AI technologies this year.

Moreover, it's reported that OpenAI has been in discussions with an investor group backed by the UAE about participating in a significant $6.6 billion funding round. These developments reflect the rapid escalation and pivotal role AI is playing globally, alongside the strategic motives that drive U.S. policy on technological export controls.