The U.S. government's internal debate intensifies as President Trump's AI deals with Middle Eastern countries raise national security and economic concerns. AMD (AMD, Financial) saw its stock fall by over 1%, while NVIDIA (NVDA) gained 0.6%. The U.S. plans to sell tens of thousands of semiconductors to Saudi Arabia and over a million AI model accelerators to the UAE. However, some U.S. officials worry that these chips might eventually benefit China.
Opinions within the government are divided. Some believe these transactions are crucial to maintaining the U.S. lead in AI and preventing a shift towards Chinese products by other nations. Others argue that the risks outweigh the benefits and are attempting to delay or halt these deals.
