The Biden administration is shaking up the tech industry after a Thursday statement from a U.S. Department of Commerce spokesperson clarified that no chip sales have been blocked to the Middle East. Nvidia and Advanced Micro Devices (AMD) are two tech giants affected by the new export license requirements– revealed through a regulatory filing earlier this week.
Nvidia, the leading artificial intelligence (AI) chip maker, informed the Department of Commerce of the new rules. According to a person familiar with the matter, AMD is also affected by the decision.
The Department of Commerce spokeperson shared, “The Biden administration “has not blocked chip sales to the Middle East.” U.S. officials usually impose export controls for national security reasons, and the move comes as the Biden administration continues to crack down on China’s advancements in technology.
It’s anticipated these regulations will not affect short-term chip supply to Middle Eastern countries, however, the long-term effects remain unknown as the tech companies will have to seek approval for their exports.