Geopolitical Tug-of-War Over AI Chips Extends to the Middle East

In a move that escalates the ongoing tech cold war between the United States and China, Nvidia, a U.S.-based leader in advanced computer chips, recently announced export restrictions on its technology to certain unspecified Middle Eastern countries. The geopolitical chess game over artificial intelligence (AI) capabilities has officially crossed over into the Middle East.

For years, the U.S. has been wary of China's rapid advancements in AI. To stymie this growth, the U.S. Department of Commerce previously limited the export of high-grade chips to China and Russia. Nvidia's latest announcement seems to be an extension of this policy. However, neither the U.S. government nor Nvidia has disclosed which Middle Eastern countries are affected by this new stricture.

Experts speculate that nations such as Iran, Saudi Arabia, and the UAE are the most likely targets of these new controls. These countries have shown considerable prowess and financial investment in AI development. Israel, another significant player in AI, appears to be unaffected by this change, given its strong alliance with the United States.

Why the Middle East? The U.S. government has expressed concerns about the potential for China to sidestep existing restrictions by sourcing advanced AI chips through third-party countries, including those in the Middle East. The situation is complex, as countries like Saudi Arabia and the UAE have increasingly close technological and educational ties with China, even as they maintain important alliances with the U.S.

Yet, this move is not just about geopolitics; it's also about human rights. The U.S. claims that AI chips are "force multipliers" for both military modernization and human rights abuses. This shift in policy may be less about pressuring Middle Eastern countries on current large-scale deals and more about sending a strong message concerning the U.S.'s stance on tech competition with China.

The long-term implications of this policy shift may be profound, potentially setting the stage for AI to become a new friction point in global relations between democratic and autocratic states.

So, as AI chips become the new battleground in this global tech duel, the Middle East finds itself in the crosshairs of a struggle that could shape the future of technological supremacy.

Source: US-China 'tech war': AI sparks first battle in Middle East 

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