Unlocking barriers in exchange for U.S. investment promises Mandatory security to prevent 'indirect exports to China' Expectations for NVIDIA AI chip exports to Korea
Approaching Jensen Huang Donald Trump, President of the United States (first line), is speaking to Jensen Huang, CEO of Nvidia (second line, right), at the U.S.-Saudi Investment Forum held at the Kennedy Center in Washington on the 19th. Elon Musk, CEO of Tesla, who recently restored relations with President Trump, is observing. Washington=AP Newsis
The administration of U.S. President Donald Trump has allowed the export of Nvidia's latest artificial intelligence (AI) semiconductors to key Middle Eastern allies, including Saudi Arabia. Although President Trump previously mentioned the possibility of restricting exports of advanced AI semiconductors, it is interpreted that he suggested these could be provided to allies if there is no security threat to the U.S. and economic benefits are guaranteed.
According to the Wall Street Journal (WSJ), on the 19th (local time), the U.S. Department of Commerce approved the export of Nvidia's latest semiconductors to AI companies Saudi Humane and the United Arab Emirates (UAE) G42. The approved quantity includes 35,000 units per company, totaling 70,000 units of Nvidia's latest server-grade graphics processing unit (GPU), the GB300, and semiconductors with equivalent performance. The GB300 is a product incorporating Blackwell, the world's highest-performing AI semiconductor as of now. This indicates that the Trump administration has lifted the export restrictions to the Middle East set by the previous Joe Biden administration to prevent technology leaks to China through third countries.
The Trump administration appears to have made this decision considering the practical benefits for U.S. companies. According to the WSJ, U.S. Secretary of Commerce Howard Lutnick maintained the stance that Middle Eastern allies must first fulfill their promised investments in the U.S. before AI semiconductor export permits could be granted. This reportedly delayed negotiations until the last moment. Ultimately, the approval was granted only after Saudi Crown Prince Mohammed bin Salman visited the White House and held talks with President Trump on the 18th. During this meeting, the two countries agreed that Saudi Humane would collaborate with Elon Musk's xAI and Nvidia to build a 500MW (megawatt) data center.
However, the Trump administration mandated high-level security measures in exchange for loosening export restrictions. The Bureau of Industry and Security (BIS) under the U.S. Department of Commerce plans to apply strict security regulations to ensure that the exported semiconductors do not end up with sanctioned entities like China's Huawei. Additionally, they will continuously monitor compliance with these regulations.
The allowance of AI semiconductor exports to Middle Eastern allies is seen as positive for South Korea as well. There is analysis suggesting that the AI semiconductor supply promised by Nvidia CEO Jensen Huang during his visit to South Korea last month is likely to proceed as planned. CEO Huang has stated that Nvidia will supply 260,000 units of the latest GPUs to the South Korean government and major companies by 2030.
Im Hyun-seok
AI-translated with ChatGPT. Provided as is; original Korean text prevails.
ⓒ dongA.com. All rights reserved. Reproduction, redistribution, or use for AI training prohibited.
