According to reports, U.S. officials have discussed limiting sales of advanced AI chips from Nvidia and other American companies on a country-specific basis.

According to reports, the U.S. is focusing on Persian Gulf countries, and this new approach would cap export licenses for some countries from a national security perspective.

The idea has gained traction recently, and deliberations are in the early stages and still in flux.

The Commerce Department last month issued a rule easing the shipment of artificial intelligence chips, such as those from NVIDIA, to data centers in the Middle East.

The rule allows data centers to apply for Validated End User status, which allows them to receive chips under a general authorization rather than having U.S. suppliers obtain individual licenses to ship.

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High Performance Computing (HPC) is the ability to process data and perform complex calculations at high speeds; HPC is one of the most important tools driving advances in computational science.

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Last year, the Biden administration announced measures to expand licensing requirements for exports of advanced chips to more than 40 countries, including the Middle East, that are subject to a U.S. arms embargo because of the risk of diversion to China.