In a significant policy shift just before leaving office, President Joe Biden has included Israel in a new category that restricts the import of advanced graphics processors from companies like NVIDIA, Intel, and AMD. The move comes despite these companies having significant R&D operations in Israel.
Under the new regulations, Israeli companies and organizations will need to submit special requests to import graphics processors, detailing their intended use and obtaining explicit approval from the Department of Commerce. This bureaucratic process could significantly delay the deployment of GPUs in Israel, potentially affecting the local high-tech industry and any sector relying on graphics processors.
Israel has been placed in the "Middle East" category alongside the UAE, Saudi Arabia, and Egypt, as well as Eastern European countries like Poland, Romania, and Hungary, plus Mexico and South American nations. Even Ukraine, a U.S. ally, falls under these restrictions despite its ongoing conflict with Russia. According to Bloomberg, these countries will be limited to approximately 50,000 graphics processors over three years, from now until 2027.
Biden chose not to include Israel in the list of 18 exempt countries, which includes:
- Western European nations like Germany, France, and the UK
- Asian allies such as Japan, South Korea, and Taiwan
- Other allies including Australia, Canada, and New Zealand
NVIDIA, which controls over 90% of the graphics processor market, responded strongly in a blog post: "Global progress is now at risk. The Biden administration is seeking to restrict access to standard computing applications through the unprecedented and misguided AI Diffusion Act, which threatens to harm innovation and economic growth worldwide."
The company argued that the new regulations would "waste America's technological advantage" and criticized the legislation's complexity and secretive development process.
The restrictions could affect Israeli tech companies, academic institutions and Israeli defense systems that use GPUs for AI-powered operations.
The new regulations have a 120-day implementation period, potentially allowing the incoming Trump administration to modify or reverse these measures before they take full effect.
NVIDIA concluded its response by expressing hope for a return to policies that "strengthen American leadership, boost the economy, and preserve our competitive advantage in artificial intelligence and beyond."
Globes contributed to this article.
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