The U.S. Department of Commerce has warned that any company using Huawei's AI chips may violate U.S. export control rules.
The U.S. Department of Commerce announced on Tuesday (May 13) that it would rescind former President Joe Biden's proposed "AI Spreading Rule," which imposes three levels of export controls on countries seeking access to AI chips, and was set to take effect on May 15.
The Trump administration is drafting its own proposal and may instead negotiate individual agreements with countries, the foreign news agency said, citing people familiar with the matter.
Bloomberg also pointed out that for chip leader Nvidia, the U.S. government is considering a deal that would allow the United Arab Emirates (UAE) to import more than 1 million of Nvidia's advanced chips, allowing the UAE to import 500,000 state-of-the-art chips annually between now and 2027, with one-fifth of the chips going to Abu Dhabi-based AI company G42 and the rest to U.S. companies that will set up data centers in the UAE.
One of those companies could be OpenAI, which could announce a new data center in the UAE as soon as this week. Under the agreement, G42 can buy the equivalent of 1 million to 1.5 million H100 chips, which is roughly four times the size of what G42 was allowed to buy under the Biden administration's export-control framework, the sources said.
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