The US may expand AI chip export controls to the global level, and major buyers will be required to invest in the US

According to reports from CCTV Finance and other media outlets, the U.S. Department of Commerce has submitted a draft rule regarding AI chips, which could expand the current export restrictions covering about 40 countries to a global scale. The rule also requires countries making large-volume purchases of Nvidia or AMD chips to commit to investing in the U.S.

Sources told the media that this move aims to enable the U.S. to approve advanced chip export transactions similar to agreements the Trump administration reached last year with the UAE and Saudi Arabia.

In November last year, the U.S. Department of Commerce approved transactions allowing U.S. chip companies to export chips to the UAE’s G42 Group and Saudi Arabia’s Humain Group. These deals were intended to help both countries expand their AI data center capacities in exchange for commitments to make large-scale investments in the U.S.

The expansion of AI chip export controls could mean the U.S. government will have full authority over AI chip exports.

Biden Administration’s Policy Upgrade

The proposed rules will establish a tiered approval process based on the quantity of chips foreign companies wish to purchase. In some cases, companies like Nvidia or AMD will be required to engage in informal consultations with the U.S. government before applying for licenses to export advanced chips.

An insider revealed that the 129-page draft circulating within the government is the sixth version from the Bureau of Industry and Security. The draft has been sent out by the Commerce Department and requires signature from Secretary Raimondo. It was submitted last week to the Office of Management and Budget, which must complete its review and return the results by next Thursday.

The draft stipulates that shipments of Nvidia’s latest GB300 graphics processors, not exceeding 1,000 units, will be subject to review but may qualify for certain exemptions. Larger shipments will require pre-approval before export licenses are granted and may involve conditions such as disclosing business models or undergoing on-site inspections.

Deployment of more than 200,000 GB300 GPUs owned by the same company within a single country will require government approval. The U.S. will only approve exports to allies that make security commitments and invest accordingly in U.S. AI development, though the draft does not specify investment ratios.

An industry insider noted that this draft essentially represents a version 2.0 of the Biden administration’s AI proliferation policy. This “AI proliferation regime” involves classifying export countries into tiers: Tier 1 countries face no import restrictions, Tier 2 countries’ companies must join data center authorization programs or obtain individual licenses, and Tier 3 countries continue to face restrictions.

This system was previously criticized for being overly restrictive, damaging U.S. competitiveness. However, the Trump administration emphasized that the proposed draft is not a proliferation rule, as such rules are complex, excessive, and have serious consequences.

(Source: Cailian Press)