The huge AI deal between the U.S. and the United Arab Emirates (UAE) is reportedly on maintain earlier than it may be finalized because of nationwide safety causes.
The deal, which supplies the inexperienced mild to the UAE to purchase billions of {dollars} price of AI chips from Nvidia and different semiconductor firms, is on maintain because of issues 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 change into 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 launched an export allow requirement for U.S. AI chips.