US expands Nvidia, AMD AI chip export curbs to some Middle East countries
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The U.S. has expanded restrictions on exports of high performing Nvidia (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD) artificial-intelligence chips to some countries in the Middle East.
Nvidia said in a regulatory filing that in Q3 fiscal 2023, the U.S. government, or USG, announced license requirements, with certain exceptions, which impacts exports to China and Russia of its A100 and H100 integrated circuits, DGX or any other systems which have A100 or H100.
"During the second quarter of fiscal year 2024, the USG informed us of an additional licensing requirement for a subset of A100 and H100 products destined to certain customers and other regions, including some countries in the Middle East," the company said in a SEC filing.
The company noted that it does not expect these additional export restrictions, would have an immediate material impact on its financial results.
Separately, AMD also received an informed letter with similar restrictions, Reuters reported citing a person with knowledge of the matter who noted that the move has no material impact on the company's revenue.
In addition, Nvidia said that the new licensing requirement "doesn't affect a meaningful portion of our revenue. We are working with the U.S. government to address this matter," the report added.
Last year, the U.S. government had announced several restrictions on exports, including a measure to cut off China from certain semiconductor chips made anywhere in the world with U.S. equipment.
More recently in August, the U.S. President Joe Biden signed an executive order to regulate certain U.S. investments in China in the three areas of semiconductors and microelectronics, quantum information technologies, and AI.
Several Chinese companies rushed to order Nvidia chips worth $5B which are important to make generative artificial intelligence, or AI, systems.
Nvidia noted in the SEC filing that it has sold alternative products in China not subject to the license requirements, such as its A800 or H800 offerings.
Reportedly, China is expected to approve the first lot of generative AI services for public rollout this week. Companies including Baidu are expected to make the cut.

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