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Trump Administration Considers Overhaul of AI Chip Export Rules

Officials are exploring replacing Biden-era tiered restrictions with a global licensing system and tighter thresholds for chip exports.

Semiconductor chips are seen on a circuit board of a computer in this illustration picture taken February 25, 2022. REUTERS/Florence Lo/Illustration/File Photo
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Beijing isn’t trying to out-compete U.S. innovation in AI infrastructure. Instead, it’s leveraging its manufacturing expertise and doubling down on physical AI, like robotics and AI-enabled EVs.

Overview

  • The Trump administration is reviewing the Biden-era AI Diffusion Framework, which governs global access to advanced AI chips and model weights, ahead of its May 15 implementation date.
  • Proposals include replacing the current three-tier export control system with a government-to-government licensing regime, allowing greater U.S. control over chip exports.
  • Officials are also considering lowering the licensing exception threshold from 1,700 Nvidia H100 chips to 500, potentially increasing regulatory oversight of exports.
  • Industry leaders, including Nvidia and Oracle, have criticized the existing framework, warning it could push buyers toward Chinese alternatives and harm U.S. competitiveness.
  • Seven Republican senators have urged the Commerce Department to withdraw the rule, citing concerns about economic fallout and its impact on American technological leadership.