According to recent reports, the United States has proposed new export rules for advanced artificial intelligence processors. Under these rules, only entities in the United States and 18 allied countries can obtain advanced AI hardware without any restrictions. This includes close U.S. allies, such as Israel, which has already expressed concerns about the proposed restrictions.

For Israel, the impact of these restrictions could be significant. The country has a strong presence in the tech industry and has been a leader in AI research and development. Limiting Israel's access to advanced AI hardware could slow down its progress in this area and hinder its ability to compete globally.

The proposed regulation categorizes countries into three groups: trusted allies, countries of concern, and all other nations. Trusted allies, such as Australia, Canada, Japan, and most of Western Europe, are largely exempt from AI export controls due to low risks. Countries of concern, including China and Russia, are presumed ineligible to receive advanced U.S. AI processors. All other nations, including Israel, fall into an intermediate category with national limits on advanced AI processor imports.

For Tier 2 countries like Israel, entities can obtain up to 1,700 Nvidia H100 GPUs (or equivalent) without any export license, but purchases for larger quantities will require a U.S. export license, which can be a time-consuming process in the rapidly evolving AI sector.

This move is part of the U.S. effort to maintain its lead in AI over competitors like China. However, industry voices warn that such measures could ultimately hinder U.S. leadership in AI innovation if America limits access to its technology.