Under this rule, data centers can apply for Validated End User status, allowing them to receive AI chips under a general authorization rather than needing individual licenses.

Data centers applying for this program will undergo a stringent review process to ensure that U.S. technology is not diverted or misused.

Applicants must comply with reporting requirements and allow for on-site reviews by U.S. government representatives to ensure compliance.

The U.S. Commerce Department has introduced a new rule aimed at facilitating the shipment of artificial intelligence chips to data centers in the Middle East.

This program simplifies the export process for U.S. exporters, enabling them to send items to Validated End Users with fewer regulatory hurdles.

The Validated End User program specifically targets companies in regions with strict licensing requirements for advanced chips.

Concerns persist in Washington that the Middle East could serve as a conduit for China to acquire advanced American chips that are otherwise banned from direct shipment.

Alan Estevez from the Commerce Department emphasized the commitment to facilitate international AI development while managing associated security risks.

G42, a UAE-based AI company with historical ties to China, has been under scrutiny, especially following Microsoft's $1.5 billion investment in the firm.

Despite G42's claims of divesting from China, U.S. lawmakers are closely monitoring its compliance with U.S. restrictions.

Nvidia, a leading AI chip supplier, has chosen not to comment on the implications of this new rule.

This regulatory shift comes after U.S. exporters were required to obtain licenses for shipping advanced chips to certain areas in the Middle East and Central Asia since October 2023.