US Tightens Global AI Chip Exports

When it comes to artificial intelligence (AI), chips are the beating heart of innovation. And the U.S. government just made it clear — it doesn’t want that heart beating outside its closest allies.

In a sweeping new policy announced this week, the Biden administration introduced the “Interim Final Rule on Artificial Intelligence Diffusion”, imposing strict controls on how advanced AI chips and AI model parameters — known as model weights — are shared globally. The move is part of a four-year push to maintain U.S. dominance in AI by limiting access to technology that powers everything from autonomous weapons to large-scale surveillance.

At first glance, this move might seem like just another round of U.S.-China tech rivalry. But there’s more at stake. The U.S. isn’t only targeting China and Russia anymore — it's now drawing hard lines across much of the world.

The new rules divide countries into three tiers. Trusted allies like Japan, South Korea, Canada, the UK, and 16 others will face no restrictions. While over 120 countries, including Israel, Mexico, and Singapore, will be subject to strict limits on chip imports.

These countries can purchase up to 50,000 GPUs annually, with options to increase that to 100,000 GPUs through government deals. Some institutions may even secure rights to obtain up to 320,000 GPUs over two years, and orders of 1,700 GPUs can be exempt for universities and hospitals. Countries deemed adversaries, like China, Iran, North Korea, and Russia, remain completely blocked.

Set to take effect in 120 days, the policy is already stirring concerns in the tech industry. Nvidia, for example, which controls over 90% of the AI chip market, saw its stock drop by 5% following the announcement. The company blasted the rules as “sweeping overreach”, warning they could stifle innovation and hurt U.S. competitiveness. Jensen Huang, Nvidia’s CEO, even credited the Trump administration for fostering America’s AI leadership, hinting at hopes for friendlier policies under the incoming government.

Meanwhile, cloud giants like Microsoft, Google, and Amazon seem less alarmed, as the new framework is expected to grant them exemptions to build AI-driven data centers abroad. Brad Smith, Microsoft’s president, expressed confidence that the company could “comply fully” with the rules while continuing to meet global customer needs.

As the U.S. tightens its grip on AI exports, the world is left wondering if this move will truly secure America’s lead or stifle innovation. With the Trump administration likely to finalize the decision, the global AI race is heating up — and the stakes have never been higher.