Reed Albergotti/Semafor THE SCOOP RIYADH — The US government is considering allowing Nvidia to export advanced chips to Saudi Arabia, people familiar with the matter said, which would help the country train and run the most powerful AI models. The fate of those sales was a major, unofficial topic at Saudi Arabia’s global AI summit, known as GAIN, on Thursday. Representatives from AI hardware firm Groq, Google, and Qualcomm, along with Saudi government officials, mingled and spoke at the event. Earlier this year, the US curtailed shipments of Nvidia’s advanced graphics cards out of concern that Saudi Arabia’s close ties with China could allow valuable AI secrets to flow there or possibly open the door to the mainland gaining access to those chips. The Biden administration has forbidden companies from selling the cutting edge equipment to China because of national security worries. Conference attendees, including some who work for the Saudi Data and AI Authority, said the country is working to satisfy US security demands in an effort to get the chips as soon as possible. The gathering in Riyadh also marked the Gulf power’s decisive shift toward the US camp in the bipolar global AI tug of war. One participant who has been to the event before said this year’s gathering had a noticeably smaller Chinese presence. On the convention center floor, there were only a handful of Chinese attendees. Exhibitors included Huawei and Alibaba, both Chinese firms, but few others. According to people with knowledge of Saudi policies, the government has taken steps to limit its involvement with Chinese firms, while keeping the door open to China should the United States cut the kingdom off from the most advanced US chips. One of the people said the Saudi government is expecting shipments of Nvidia H200s, the company’s most advanced chips currently available. A Nvidia spokesman declined to comment. A Commerce Department spokesperson told Semafor that the agency “cannot speak to specific licenses or transactions” but stressed that policy actions “are the subject of a rigorous interagency process including the Departments of Commerce, State, Defense, and Energy.” Saudi Arabia is in a race to develop large scale AI models, both against the fast pace of the industry and its regional rival, the United Arab Emirates, which beat Saudi Arabia to the punch. But the lack of chips means technology companies in Saudi Arabia are being held back. Reed’s view on what the US really needs to get comfortable on with Saudi Arabia’s tech ambitions. → |
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