US Drafts Sweeping Export Controls Requiring Global Approval for Nvidia and AMD AI Chips

US reportedly considering sweeping new chip export controls | TechCrunch

How, and if, the Trump administration plans to regulate the export of semiconductors has remained unclear since Donald Trump took office last year. Now, we have an idea of what the administration is thinking. U.S. regulators have allegedly drafted rules that would require U.S. government approval to ship AI chips anywhere outside the U.S., according to Bloomberg, citing sources. This would give the U.S. significantly more control over companies like AMD and Nvidia. TechCrunch reached out to AMD, Nvidia, and the U.S. Department of Commerce for comment. In these drafted rules, companies and governments outside the U.S. would have to be granted approval by the U.S. Department of Commerce to purchase these chips. The review process would vary based on the size and scale of the potential purchase, Bloomberg reported. For example, a small order by a company outside the U.S. may warrant a basic review while a sizable order could require the company's corresponding government to get involved. This could, of course, all change before a final announcement or ruling, but the proposal would represent significantly more government involvement than the AI Diffusion rule instituted under President Joe Biden. The Trump administration formally rescinded Biden's diffusion regulation last May, less than a week before it was set to go into effect. While this is the first inkling of what broad export restrictions would look like, it isn't fully surprising that the Trump administration is looking for more government involvement as opposed to less based on how it has handled Nvidia's potential exports to China. The Trump administration has flip flopped multiple times on whether or not the company could send its advanced AI chips to the Chinese market before deciding to allow exports if the U.S. Department of Commerce was able to approve the customers. However, this oversight approach may end up hurting U.S. chip companies and the U.S.'s current dominance in the global AI market. If it becomes harder to source chips from the U.S., companies may increasingly turn to other sources especially as chip companies outside the U.S. continue to develop more advanced chips. In Nvidia's case, the export regulations already are hurting them. The semiconductor giant has not seen the return of its customers in China after nearly a year of uncertainty of whether or not they would keep access to the AI technology.

US gov't preps sweeping export controls for Nvidia, AMD AI hardware -- worldwide licensing system would give Trump admin broad authority to block global sales

The U.S. government is drafting sweeping new export regulations that would give it authority to approve nearly all global shipments of advanced AI accelerators made by American companies, including AMD and Nvidia, reports Bloomberg. The rules would expand existing country-based restrictions into a worldwide licensing system and will give Trump's administration power to allow or decline large-scale AI infrastructure buildouts. The rule turns out to be considerably stricter than the highly-criticized AI Diffusion Rule from the Biden era. The newly proposed export regime establishes a tiered licensing system based on computing scale: small-scale batches would pass through a simplified review, mid-scale deployments would require 'preclearance before seeking export licenses' from the U.S. Department of Commerce, whereas large-scale AI clusters would require governments of host countries to negotiate the deal with the U.S. government and investments in the U.S. AI infrastructure as part of the deal. * Shipments involving up to 1,000 Nvidia GB300 GPUs would pass through a simplified review and may qualify for limited exemptions. * Larger installations would require pre-authorization before export licenses could be issued. These will introduce compliance obligations that may include operational transparency, disclosure of business activities, and potential on-site inspections by U.S. authorities. * Clusters powered by 200,000 GB300 GPUs operated by a single company within one country -- such as those currently deployed by AWS, Microsoft, Oracle, Open AI, or xAI -- would trigger direct intergovernmental arrangements. In these cases, approvals would depend on national-security assurances as well as commitments to invest in American AI infrastructure. For now, companies like AMD, Cerebras, and Nvidia cannot ship high-performance AI processors to select countries, such as China, Iran, North Korea, and Russia, just to name a few. Yet, shipping large-scale batches of AI accelerators to Middle Eastern countries requires direct intergovernmental arrangements and investments in the American AI infrastructure. If the newly proposed regulation becomes a law, then such arrangements would become much more common particularly with allied nations in Europe. The proposed policy is by no means a total export ban, but an extremely powerful tool that lets the U.S. government influence how global AI infrastructure develops. If the Trump administration does not like the fact that a UK or France-based company deploys a cluster of over 200,000 GB300 GPUs or equivalent, it can deny appropriate export licenses if appropriate governments and companies do not meet their requirements. If the proposed policy is enacted, for companies like AMD or Nvidia, which ship their products globally, everything will depend on how quickly licenses are granted and what conditions are attached. Fast approvals with light restrictions would let most small projects move forward, though with more paperwork. However, for larger installations, tougher requirements would delay construction and make operating large data centers outside the U.S. considerably more complicated. Meanwhile, building clusters comparable to those currently operated by AWS, Google, Oracle, Microsoft, or xAI outside of the U.S. would face extreme complications, which would lower their economic feasibility. Follow Tom's Hardware on Google News, or add us as a preferred source, to get our latest news, analysis, & reviews in your feeds.

US Drafts Rules for Sweeping Power Over Nvidia's Global Sales

Nvidia Corp. has long been the world's AI kingmaker. Now, the Trump administration is considering taking a formal role in the industry that would include similarly sweeping powers. US officials have written draft regulations that would restrict AI chip shipments to anywhere in the world without American approval, giving Washington broad control over whether other countries can build facilities for training and running artificial-intelligence models -- and under what conditions. The proposed regulations would require companies to seek US permission for virtually all exports of AI accelerators from the likes of Nvidia and Advanced Micro Devices Inc., a global expansion of curbs that currently cover around 40 countries, according to people familiar with the matter. These chips are the most coveted components in the tech world. Companies like OpenAI and Alphabet Inc. buy them by the thousands to install in data centers that run services like ChatGPT and Gemini. President Donald Trump's team has said repeatedly that they want the world to use American AI, and the draft rules aren't meant to function as an Nvidia export ban. Rather, the regulation would set up the US government as gatekeeper for the AI industry: Companies -- and in some cases, their governments -- would have to seek the blessing of the US Commerce Department to buy the precious accelerators. How Trump's team decides to dole out those licenses would then determine whether countries are able to build critical digital infrastructure, technology that many world leaders see as key to economic growth, corporate competitiveness and military sovereignty. The specific approval process would depend on how much computing power a company wants, said the people, who asked not to be named discussing an ongoing policy debate. Shipments of up to 1,000 of Nvidia's latest GB300 graphics processing units, or GPUs, would undergo a fairly simple review with certain exemption opportunities. Companies building bigger clusters would need pre-clearance before seeking export licenses. They could face conditions such as disclosing their business models or allowing the US government site visits, depending on the specifics of the data centers in question. For truly massive deployments -- more than 200,000 of Nvidia's GB300 GPUs owned by one company, in one country -- the host government would have to get involved. The US would only approve such exports to allies that make stringent security promises and "matching" investments in American AI, the people said, noting that the draft rule doesn't specify an investment ratio. For context, 200,000 GB300s is the number that NScale, a UK company that specializes in renting AI chips to third parties, is planning to provide to Microsoft Corp. across four sites in the US and Europe. The firm described this deal as "one of the largest AI infrastructure contracts ever signed." The Commerce Department's Bureau of Industry and Security, which is responsible for semiconductor export controls, Nvidia and AMD didn't respond to requests for comment. The Trump team's framework isn't finalized, the people familiar with the situation emphasized, as officials across federal agencies are currently providing their input. The draft could change substantially, or it could be shelved for other priorities. Still, it marks the administration's most substantive step toward a global chip export strategy since scrapping President Joe Biden's approach in May. Trump officials have derided the previous administration's so-called AI diffusion rule, which controlled AI chip sales to most countries and set caps on how much could be exported, as overly burdensome. They've also spoken consistently about encouraging the world to use American -- not Chinese -- AI technology, and have begun setting up initiatives to promote American AI exports, especially in the Global South. Whether Trump's approach ultimately proves more or less restrictive will be a function of how officials use the worldwide license requirements they are now considering. If Washington approves chip sales speedily and with few strings attached, the global AI infrastructure buildout could simply continue humming along -- just with a lot more paperwork. Bureaucratic delays or drawn-out negotiations, meanwhile, would throw a wrench into project planning. Last year, it wasn't until months after the US announced a chip export deal with the United Arab Emirates that licenses began to flow, contingent on the Gulf nation investing $1 in the US for every dollar invested at home. A big unknown is how much money the US would expect from countries like France or India, which also have ambitions to build large data centers of 1 gigawatt or more. Another factor is how Trump may wield chip curbs in broader diplomatic negotiations, especially as he recalibrates his tariff strategy. Last year, the president threatened semiconductor export controls in retaliation for digital services taxes that have been imposed in places like the European Union. Also unclear is how the US will handle restrictions on model weights, which are the numerical parameters that AI software uses to process data and make decisions -- making them among the most valuable intellectual property in the world. Biden's global chip framework included overarching restrictions on where companies could host frontier model weights, whereas Trump's approach would handle that question through individual licenses. Foreign leaders are broadly uncomfortable subjecting their tech futures to Washington's whims. But when it comes to computing power, they have little choice. Countries can either import chips from American companies like Nvidia, the market leader by a wide margin, or Chinese firms like Huawei Technologies Co., which makes less-powerful chips in much smaller quantities but has global ambitions. And lest they consider the latter, Washington has issued a warning that using Huawei AI accelerators anywhere in the world could violate American trade restrictions. Read more about AI sovereignty: Get the Tech Newsletter bundle. Get the Tech Newsletter bundle. Get the Tech Newsletter bundle. Bloomberg's subscriber-only tech newsletters, and full access to all the articles they feature. Bloomberg's subscriber-only tech newsletters, and full access to all the articles they feature. Bloomberg's subscriber-only tech newsletters, and full access to all the articles they feature. Bloomberg may send me offers and promotions. Plus Signed UpPlus Sign UpPlus Sign Up By submitting my information, I agree to the Privacy Policy and Terms of Service. China's AI ambitions are a central factor behind Washington's AI policymaking. One focus is limiting China's production of AI chips, which the US has done by restricting exports of semiconductor manufacturing equipment -- and, under Trump, allowing Nvidia back into China to compete on Huawei's home turf. The latest global rules wouldn't change Washington's approach to chip exports to China, people familiar with the matter said, as Trump's team weighs how many Nvidia chips would be enough to dampen Huawei's rise without giving China too much additional computing capacity. But the global framework could have significant knock-on effects for China's AI industry. One direct consequence of the rule would be better US government visibility into global chip flows, which some officials have long argued is necessary to detect semiconductor smuggling. Trump's team last year had planned chip export controls on Malaysia and Thailand to combat chip diversion to China, though they ultimately decided against singling out individual countries as they worked on a global strategy. The US could also use export licenses to regulate Chinese firms' access to AI chips overseas, as some national security hawks have long advocated. In select instances, they already have: Trump's team conditioned some Nvidia shipments to the UAE on firms not providing computing services to any Chinese AI companies, according to people familiar with the matter. It remains to be seen whether they impose similar license terms in other regions such as Southeast Asia, where firms like Alibaba Group rent the use of Nvidia chips they are unable to buy themselves.

US mulls new rules for AI chip exports, including requiring investments by foreign firms in the US

SAN FRANCISCO, March 5 (Reuters) - U.S. officials are debating a new regulatory framework for exporting artificial intelligence chips and are considering requiring foreign nations to invest in U.S. AI data centers or security guarantees as a condition for granting exports of large numbers of chips, according to a document seen by Reuters. The rules, which are not yet final and could change, ⁠would be the first attempt to regulate the flow of AI chips to U.S. allies and partners since President Donald Trump's administration rescinded its predecessor's so-called AI diffusion rules, which sought to keep a significant amount of AI infrastructure buildout in the U.S. and route most purchases through a handful of U.S. cloud computing companies. According to a document seen by Reuters, even small chip installations of less ⁠than 1,000 chips could need a license. To qualify for an exemption, the exporter of the chips such as Nvidia (NVDA.O), opens new tab or Advanced Micro Devices (AMD.O), opens new tab would have to monitor them, and the recipient would have to agree ⁠to the use of software that would not allow the chips to be linked to other chips to form a larger "cluster," the term the AI ⁠industry uses to describe large groups of chips, according to the document. The Commerce Department and the White House did not immediately ⁠respond to a request for comment. Nvidia and AMD did not immediately respond to requests for comment. Reporting by Alexandra Alper in Washington and Stephen Nellis in San Francisco; editing by Chris Sanders Our Standards: The Thomson Reuters Trust Principles., opens new tab

Nvidia and AMD chips could be subject to U.S. approvals for foreign sales

Why it matters: The AI chips sector has been flourishing as tech companies ramp up their spending on data centers and new AI models, underpinning the broader market. The big picture: The draft regulations would give "Washington broad control over whether other countries can build facilities for training and running artificial-intelligence models -- and under what conditions," Bloomberg reported Thursday. * Such a requirement would add a layer of bureaucracy to foreign sales of chips from the likes of Nvidia and AMD that could slow sales or serve as the regulatory structure to expedite their export. The impact: Nvidia and AMD shares initially fell on the news but later regained ground. * Nvidia closed up 0.2%, while AMD closed down 1.3%. Behind the scenes: Chipmakers have been awaiting the Trump administration's approach to exports after the White House scrapped the Biden administration's "diffusion" rule. * AI companies and chipmakers had argued the Biden rules imposed an overly complex framework that would have made it difficult for American companies to sell abroad. The big question: How restrictive will the new rules be? * If the new system swiftly processes applications and awards approvals, chipmakers will likely welcome it. * If it constricts exports or results in major applications being rejected, it could brew opposition. Representatives for the White House, Nvidia and AMD did not immediately respond to requests for comment.

The U.S. Could Soon Turn NVIDIA and AMD's AI Chips Into a Foreign Policy Tool, With Not a Single Country Being Left Out

The Trump administration is exploring options to address AI chip exports, and initial reports suggest the proposed regulations are far more aggressive than the industry anticipated. The debate around AI chip exports has emerged several times since chip manufacturers like NVIDIA and AMD achieved significant compute breakthroughs. This matter was also under intense focus by the Biden administration, which introduced the "AI Diffusion" act that addresses AI chip exports by categorizing countries into different levels, each with its own caveats. The Diffusion Act was perceived as a threat to America's AI industry, and NVIDIA also opposed it, but the new regulations proposed under the Trump administration are far more aggressive. According to a Bloomberg report, the US government is planning to draft regulations that would hinder AI chip exports to any country worldwide, including key allies. It is claimed that NVIDIA and AMD would need to apply for export licenses for all hardware shipped out, with no exemptions currently planned. Interestingly, the intensity of scrutiny of export requests would depend on the computing power being shipped out. The report states that shipments of up to 1,000 NVIDIA GB300 racks (Bloomberg calls them GPUs so that they could be B300s) could be exported with a "fairly simple review." For large-scale customer orders, the US would require the host government to get involved and lead the negotiations, with key requirements being "security promises and "matching" investments in American AI". This regulation could mark the first occasion for the current administration to lay a framework for the diffusion of American AI technology, but the report claims it would put the global AI infrastructure buildout at the mercy of a bureaucratic system rife with delays and paperwork. The implementation of the proposed regulations hasn't been discussed for now, and there isn't a set timeline for when we could see these restrictions play out. Given that the AI Diffusion rule was rescinded in May 2025, we could see newer regulations imposed under a similar timeline.

Nvidia sinks on report of global AI chip export rules By Investing.com

Investing.com -- NVIDIA Corporation (NASDAQ:NVDA) fell 1.7% Thursday afternoon and Advanced Micro Devices (NASDAQ:AMD) dropped 2% after Bloomberg reported that the Trump administration is drafting regulations requiring licenses for AI chip exports worldwide. The proposed rules would require companies to seek US government approval for virtually all exports of AI accelerators from Nvidia and AMD, expanding current restrictions that cover around 40 countries to a global framework, according to people familiar with the matter cited by Bloomberg. Under the draft regulations, shipments of up to 1,000 of Nvidia's latest GB300 graphics processing units would undergo a review process with certain exemption opportunities. Larger deployments would require pre-clearance before seeking export licenses and could face conditions including business model disclosures or government site visits. For deployments exceeding 200,000 GB300 GPUs owned by one company in one country, the host government would need to participate in the approval process. The US would only approve such exports to allies that make security commitments and matching investments in American AI, though the draft rule does not specify an investment ratio. The regulations are not intended to function as an export ban, but would establish the US Commerce Department as gatekeeper for the AI industry. Companies and their governments would need Commerce Department approval to purchase the chips, which are used by firms including OpenAI and Alphabet to power services like ChatGPT and Gemini. The Trump administration has stated it wants the world to use American AI technology. The proposed framework would give Washington control over whether countries can build facilities for training and running artificial-intelligence models and under what conditions.

US mulls new rules for AI chip exports, including requiring investments by foreign firms in US

SAN FRANCISCO, March 5 (Reuters) - U.S. officials are debating a new regulatory framework for exporting artificial intelligence chips and are considering requiring foreign nations to invest in U.S. AI data centers or security guarantees as a condition for granting exports of large numbers of chips, according to a document seen by Reuters. The rules, which are not yet final and could change, would be the first attempt to regulate the flow of AI chips to U.S. allies and partners since President Donald Trump's administration rescinded its predecessor's so-called AI diffusion rules, which sought to keep a significant amount of AI infrastructure buildout in the U.S. and route most purchases through a handful of U.S. cloud computing companies. (Reporting by Alexandra Alper in Washington and Stephen Nellis in San Francisco)