A White House Official said Tuesday that the United States does not need to block the global spread of its AI chips and technology to control national security risks, signaling a flexible approach toward sharing advanced technology to trusted allies such as Saudi Arabia.
When President Biden was in office, he tried to curb China’s progress in artificial intelligence by limiting access to powerful chips. However, President Trump is taking a different approach—one that encompasses offering US technology to countries on the condition that they avoid Chinese alternatives.
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David Sacks, the White House’s AI and crypto czar, signaled on the administration’s new stance only days after Washington announced plans to rescind and modify a previous regulation from the Biden era that would limit global access to artificial-intelligence chips.
“The Trump administration has just announced that we will be rescinding what’s known as the Biden diffusion rule… it literally restricted the diffusion or proliferation of American technology all over the world. (Diffusion) is not a risk with a friend like Saudi Arabia at all but I think in general there was a great deal of misunderstanding about the diversion of GPUs.”
-Sacks said at the Saudi-U.S. Investment Forum
These comments imply how the United States is now looking to deepen tech ties with Middle Eastern partners investing heavily in AI infrastructure and aiming to position themselves as a hub of emerging technology outside the United States.
Before these comments were made, Saudi Arabia and its neighbors saw their access to US chips limited under the AI diffusion rules imposed during the Biden era. However, Trump officials deem this as “misguided”, touting that there is no risk with “a friend like Saudi Arabia.” The Biden-era controls were rescinded by the Department of Commerce on Tuesday.
“The original reason for this diffusion rule is that we have a policy of not wanting our advanced semiconductors to go to what are known as countries of concern.”
-David Sacks.
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9. Cisco Systems, Inc. (NASDAQ:CSCO)
Number of Hedge Fund Holders: 84
Cisco Systems, Inc. (NASDAQ:CSCO) is an American technology company that provides information technology and networking services. On May 13, the company announced that it will be joining Saudi Arabia’s AI startup HUMAIN’s alliance to build Saudi Arabia’s future AI Infrastructure. Cisco and G42 will be extending their strategic partnership to boost AI innovation across the United Arab Emirates (UAE) and the United States. Additionally, Cisco will also be collaborating with AIP (AI Infrastructure Partnership) to boost investment in data centers and AI infrastructure in the United States, as well as globally.
“The pace of AI innovation today is unprecedented, and yet, what we’re able to do today is just a fraction of what will be possible in just a few years. For countries, organizations, and industries, the time to invest in key infrastructure, AI safety and security, and new skill development is now. Cisco is developing the critical technologies of the AI-era, and we’re thrilled to be working across the Gulf to maximize their impact.”
-Jeetu Patel, EVP and Chief Product Officer, Cisco.
8. Oracle Corporation (NYSE:ORCL)
Number of Hedge Fund Holders: 91
Oracle Corporation (NYSE:ORCL) is a database management and cloud service provider. On May 13, the company announced that it remains committed to the Kingdom of Saudi Arabia’s Vision 2030, a government program launched to transform Saudi Arabia into a “vibrant society,” a “thriving economy,” and an “ambitious nation”. Owing to US President Donald Trump, the vision is now gaining heavy traction. The $14 billion investment spanning over the next 10 years will offer some of the world’s best cloud and AI technology to the Kingdom, offering both economic advancement and innovation.
“Thanks to the decisive actions and strong leadership of President Trump and his administration, Oracle is providing the world’s most advanced cloud and AI technology to Saudi Arabia. Our expanded partnership with the Kingdom will create new opportunities for its economy, deliver better health outcomes for its people, and fortify its alliance with the United States, which will create a ripple effect of peace and prosperity across the Middle East and around the world.”
-Safra Catz, CEO, Oracle.