The United States has implemented new export restrictions on advanced artificial intelligence (AI) chips in a move that is certain to affect Israel’s tech industry. Israel is a world-leader in AI.
The restrictions aim to limit the proliferation of high-performance GPUs to adversarial nations such as China, Russia, North Korea and Iran; they are intended to prevent such states from acquiring advanced AI technologies that could enhance their military capabilities.
Under the new regulations, adversarial countries will be limited in their access to GPUs essential for developing large-scale AI models.
However, the restrictions also impose additional scrutiny on imports to some US allies — including Israel.
Three Tiers
According to the restrictions, countries have been categorized into three tiers based on their level of export control requirements.
Israel, a US ally and the only democracy in the Middle East, was placed on a list of some 120 countries — including Singapore, Saudi Arabia and the United Arab Emirates — who will face country caps. These countries will require approval for a permit to import advanced GPUs, such as those produced by Nvidia, Intel, and AMD.
Israeli companies and research institutions must now provide detailed justifications for these imports and await US government approval, despite having been largely instrumental in the development of the chips in the first place.
In contrast, 18 other US allies are exempt from the new rules. The allies without restrictions include Australia, Belgium, Canada, Denmark, Finland, France, Germany, Ireland, Italy, Japan, the Netherlands, New Zealand, Norway, Republic of Korea, Spain, Sweden, Taiwan and the United Kingdom.
Industry Reactions
The restrictions have drawn criticism from major technology companies.
Israel’s tech industry, known for its contributions to AI advancements, may face delays in projects requiring high-performance GPUs. The controls could also affect sectors such as cybersecurity, healthcare, and autonomous systems, where AI development plays a critical role.
Nvidia, a leading producer of AI chips, has expressed concerns that the rules could undermine US competitiveness in the global AI sector. The company highlighted potential delays and disruptions in international collaborations resulting from these measures.
But for Nvidia, there are other issues as well. Nvidia is among the international tech giants that have expanded their presence in Israel since launching its first operations in the country in 2016. Two years later, the company opened an AI research center in the Jewish State.
“We’re now one of Israel’s largest high-tech employers, with 3,000+ employees and offices across the country. NVIDIANs enjoy the unique combination of a startup culture and the global leadership of a technology powerhouse,” the company says in a statement on its LinkedIn page.
Why Did the US Restrict AI Exports to Israel?
Israel’s inclusion in the category requiring enhanced oversight is notable, given its status as a key US ally and a world leader in the field of artificial intelligence (AI).
It’s not yet clear why the Biden Administration chose to include its closest Middle East ally in a category with those who do not share an “unbreakable bond” with the United States.
But the move could impact the pace of innovation in Israel’s AI sector, as well as collaborations with US technology firms.
JewishPress.com has reached out to the Prime Minister’s Office for a comment.
