US simplifies AI chip shipments to Middle East with new rule

The U.S. Commerce Department has introduced a new rule to simplify the shipment of AI chips to data centers in the Middle East. Data centers can now apply for Validated End User status, allowing them to receive chips without individual licenses. Previously, U.S. exporters needed licenses to ship advanced chips to the Middle East and Central Asia. The new rule aims to streamline this process amid concerns that the region could be a route for China to access restricted American technology. Data centers applying for the program will undergo a thorough review to ensure U.S. technology is not misused. The Commerce Department emphasizes the importance of balancing international AI development with national security.