Google, Microsoft given global gatekeeper role over AI chips: report

Major cloud providers such as Google (NASDAQ:GOOG)(NASDAQ:GOOGL) and Microsoft (NASDAQ:MSFT) could receive the role of global gatekeepers to artificial intelligence technology by the U.S. Department of Commerce, according to a report by Reuters.

The program, according to unnamed sources familiar with the issue, will allow certain cloud providers to offer access to high-end AI chips to global customers, while also restricting such access to nations such as China, Russia, Iran and Venezuela, according to the report.

According to a draft of the new rule, which is subject to change, companies outside the primary gatekeepers will be allowed to compete for licenses to import a limited number of AI chips from Nvidia (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD), the report said.

The “Artificial Intelligence Diffusion” rule is undergoing a final review, indicating it could be nearing publication.

Seeking Alpha reached out to Google and Microsoft for comment.