A White House Official said Tuesday that the United States does not need to block the global spread of its AI chips and technology to control national security risks, signaling a flexible approach toward sharing advanced technology to trusted allies such as Saudi Arabia.
When President Biden was in office, he tried to curb China’s progress in artificial intelligence by limiting access to powerful chips. However, President Trump is taking a different approach—one that encompasses offering US technology to countries on the condition that they avoid Chinese alternatives.
David Sacks, the White House's AI and crypto czar, signaled on the administration’s new stance only days after Washington announced plans to rescind and modify a previous regulation from the Biden era that would limit global access to artificial-intelligence chips.
"The Trump administration has just announced that we will be rescinding what's known as the Biden diffusion rule... it literally restricted the diffusion or proliferation of American technology all over the world. (Diffusion) is not a risk with a friend like Saudi Arabia at all but I think in general there was a great deal of misunderstanding about the diversion of GPUs.”
These comments imply how the United States is now looking to deepen tech ties with Middle Eastern partners investing heavily in AI infrastructure and aiming to position themselves as a hub of emerging technology outside the United States.
Before these comments were made, Saudi Arabia and its neighbors saw their access to US chips limited under the AI diffusion rules imposed during the Biden era. However, Trump officials deem this as “misguided”, touting that there is no risk with “a friend like Saudi Arabia.” The Biden-era controls were rescinded by the Department of Commerce on Tuesday.
"The original reason for this diffusion rule is that we have a policy of not wanting our advanced semiconductors to go to what are known as countries of concern."
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Advanced Micro Devices, Inc. (AMD) – MI300X, EPYC Chips Fuel AMD Growth Despite China Export Headwinds
A close up of a complex looking PCB board with several intergrated semiconductor parts.
Advanced Micro Devices, Inc. (NASDAQ:AMD) develops and sells semiconductors, processors, and GPUs for data centers, gaming, AI, and embedded applications. Another US technology firm benefiting from US President Donald Trump’s tour of Gulf states is AMD. On May 13, the company announced a deal with AI startup Humain, which was recently launched by Saudi Arabia’s sovereign wealth fund. The agreement comprises building one of the “world’s most open, scalable, resilient, and cost-efficient AI infrastructure” to power global intelligence via a network of AMD-based AI computing centers. These will stretch from the Kingdom of Saudi Arabia to the United States. The parties will be investing up to $10B to deploy 500 megawatts of AI compute capacity over the next five years.
“At AMD, we have a bold vision to enable the future of AI everywhere - bringing open, high-performance computing to every developer, AI start-up and enterprise around the world. Our investment with HUMAIN is a significant milestone in advancing global AI infrastructure. Together, we are building a globally significant AI platform that delivers performance, openness and reach at unprecedented levels.”
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