The U.S.–UAE AI chip deal, worth billions, is on hold due to national security concerns. The potential for AI chips to be smuggled to China has raised alarms, although UAE officials had provided assurances of safeguards against such actions. The U.S. is also considering export restrictions on chip exports to other countries like Thailand and Malaysia, reflecting increasing worries about chip smuggling operations. Malaysia recently implemented export permit requirements for U.S. AI chips as a precautionary measure.
Concerns regarding potential smuggling of AI chips to China have led to the U.S. putting a hold on the UAE's billion-dollar AI chip deal, despite UAE assurances.
The U.S. deal with the UAE involves billions of dollars worth of AI chips from Nvidia and other semiconductor companies, halted due to national security concerns.
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