Trade

Saudi Arabia anticipates US easing Nvidia chip ban

September 16, 2024, 8:20 AM

Nvidia CEO Jensen Huang arrives for the Inaugural Artificial Intelligence Insight Forum in Washington DC last year, which discussed how the US should craft AI legislation

US concern over Saudi-China ties
Export curbs on most advanced chips
Nvidia dominates AI chip market

Saudi Arabia is welcoming reports that the US government is considering lifting export restrictions on Nvidia chips to the kingdom, which maintains close trade ties with US rival China.

Asked at an artificial intelligence (AI) forum in Riyadh if he would be content to see exports without limits, minister of industry and mineral resources Bandar Alkhorayef, said: “Definitely. It’s really important to see a future of a global world that has no barriers.”

“We need to benefit from each other. In today’s world technologies and ideas can come from any region. The more we are open the more we can gain altogether,” he added.

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Nvidia, based in California and currently valued at more than $3 trillion, dominates the AI chip market with a 95 percent share, despite advances by rivals.

It remains the preferred choice for many developers and organisations worldwide, including those in the UAE and Saudi Arabia.

The Biden administration last year expanded curbs on the sale of Nvidia chips used in AI and other digital technologies to Middle East countries. The US ban has included Nvidia’s advanced graphics cards.

The US is worried the most advanced chips could be used by China’s military and is also concerned about Saudi-China ties. The Asian republic is the kingdom’s number one trade partner.

At the AI forum numerous Saudi entities talked of plans to develop AI capacities in different fields using Nvidia chips.

The Saudi Data and Artificial Intelligence Authority (SDAIA) announced an Arabic chat model called Allam which it has developed with Nvidia. The largest Arabic-language chatbot in the world, Allam is due to be rolled out on Microsoft and IBM platforms next year.

“SDAIA and Nvidia are driving a new era of AI-powered transformation,” Nvidia said, announcing plans to provide its DGX SuperPOD data centre infrastructure including its Blackwell chip to the Saudi government.

The kingdom’s cloud computing network is dominated by a partnership between state-owned Saudi Telecom and China’s Alibaba. Huawei has also started cloud services in the country.

UAE AI company G42 has talked publicly of US pressure against collaboration with Chinese counterparts.

Saudi Arabia is seeking a defence pact with the US that would see it commit to pulling back from some aspects of its close trade ties with China.

Earlier this week Alkhorayef told the South China Morning Post that the kingdom was willing to consider payment for oil in Chinese yuan, in what would be a significant move away from the dollar.