Nvidia stock was falling Tuesday. The chip maker may face more limitations on exports of its advanced artificial intelligence chips.
U.S. government officials have discussed capping sales of advanced AI chips from the U.S. to certain countries, Bloomberg reported, citing people familiar with the matter. That could affect both NVIDIA Corp and rival chip maker Advanced Micro Devices.
Nvidia, AMD shares were down 4.3% in morning trading.
Officials are focused on countries in the Persian Gulf that have a growing interest in AI data centers as well as enough money to fund them, according to the report. Deliberations are in early stages and remain fluid.
The Bureau of Industry and Security, which oversees export controls, didn’t immediately respond to a request for comment outside of normal office hours.
Limiting sales to specific countries would tighten restrictions that initially targeted China and its ambitions to advance in artificial intelligence, which the U.S. considers a security risk.
The Biden administration has already restricted AI chip exports to more than 40 countries in the Middle East, Africa, and Asia over fears they could be diverted to China, the report said.
Nvidia declined to comment. AMD didn’t immediately respond to a request for comment.