U.S. Government Under Trump Explores Revision of AI Chip Regulations Set During Biden's Term
The U.S. Department of Commerce, under the Biden administration, is reportedly revising policies that restrict global access to U.S.-made AI chips. This potential overhaul aligns closely with President Trump's broader trade philosophy, which emphasizes bilateral deals over multilateral structures.
The Framework for Artificial Intelligence Diffusion, issued by the Department of Commerce in January, sets out to limit the global spread of advanced AI chips based on national security concerns. The current system divides the world into three distinct tiers. Tier One, comprising 17 nations and Taiwan, faces no restrictions and can import unlimited quantities of these chips. Tier Two includes around 120 countries that are permitted to buy U.S. AI chips, but only in limited volumes. Tier Three, which features countries designated as national security risks such as China, Russia, Iran, and North Korea, is effectively barred from receiving the technology altogether.
Currently, orders for up to approximately 1,700 of Nvidia's H100 chips are exempt from country-specific caps, requiring only a government notification without the need for a license. However, the revised policy may potentially eliminate this current tiered system and replace it with a global licensing regime with government-to-government agreements. The administration is considering adjustments to the threshold for exceptions to licensing requirements, which could impact the flow of these advanced AI chips globally.
The Framework for Artificial Intelligence Diffusion also imposes controls on certain AI model weights to ensure that the most powerful computing capabilities remain within the United States and its allied nations. This change would tighten regulations and could significantly lower the threshold for licensing requirements, potentially applying to orders of up to 500 H100 chips. Companies must comply with the framework's restrictions by May 15.
It is important to note that readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
This potential overhaul in AI chip export policies could have far-reaching implications for the global technology landscape. Stay tuned for more updates as this story develops.
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