The USA has officially imposed a full access restriction on Malaysia for the AI chips

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Previously, we mentioned how Malaysia could have limited access to the data centre. Now, it seems the USA has fully exercised its authority. That said, what should you know about it?

For your information, through the directive issued by President Joe Biden, countries around the world are divided into three levels. Level 1 is for 18 allied countries such as Japan, Taiwan, the UK and Australia which are given unlimited chip access. Meanwhile, Level 2 is for countries like Malaysia, Singapore, Israel and the UAE where each country has a limit on the computing power to access the chips.

Moreover, Level 3 is for enemy countries like Russia, China and Iran which are prevented from accessing US-tech chips. However, Malaysia does not need to worry that its dream of becoming a regional data centre will be affected because Microsoft, Google and Amazon have been given permission to build AI data centres without any limits on the country's computing power.

However, US-based companies can only place 50% of their computing power overseas. They can also set no more than 25% of their computing power overseas in a Tier 1 country and a maximum of 7% of their computing power in a Tier 2 country. 

Since restrictions on AI chip purchases were imposed on them two years ago, China has been accessing cloud computing power in data centers located in the Asian region. President Biden's order today is an effort to close the loophole that China has used to bypass this AI hardware barrier.

Immediately after the announcement, NVIDIA said the move was “out of bounds” and would restrict technology that already exists in gaming computers and consumer hardware. Oracle earlier this month said the order would cause the market to shift to Chinese-made AI and GPU chips, which would only hurt American companies.


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Tags: Malaysia, USA, AI, Nvidia