The United States Commerce Department has announced a new rule that could streamline the process for sending AI chips to data centres in the Middle East. The rule will allow data centres to apply for Validated End User (VEU) status, enabling them to receive AI chips through a general authorisation, eliminating the need for individual licences for each shipment.

The move follows concerns in Washington that Middle Eastern countries could act as intermediaries for China to acquire US chips that are restricted from direct export to China. G42, an AI company based in the United Arab Emirates with historical connections to China, has been at the centre of these concerns, despite its efforts to distance itself from China and comply with US regulations.

The VEU program will involve rigorous screening to ensure safeguards are in place to prevent the misuse or diversion of US technology. The Commerce Department emphasised the importance of this review process to protect national security.

The Bureau of Industry and Security reiterated its commitment to facilitating international AI growth while mitigating risks to US and global security, aiming to balance technological development with safety concerns.