The current US administration is contemplating imposing stricter limitations on the export of GPUs, primarily targeting AI chips in an effort to redirect AI investments towards American soil.

The Department of Commerce is reportedly crafting a policy that would necessitate chip manufacturers to acquire governmental consent prior to exporting AI processors to specific countries. This move strengthens Washington’s control over AI computing resources.

According to Axios, a preliminary 129-page document is making rounds within the government, although a spokesperson from the White House refuted this, stating that the document does not align with President Trump’s public stance on export controls and encouragement of American AI technology exports.

Nvidia and AMD, major players in the AI chip market, may be required to navigate a country-specific export approval process. This proposal echoes the outgoing Biden administration’s AI Diffusion rules, which restricted AI chip sales globally, sparing a select group of allied nations while enforcing stringent bans on exports to countries like Russia, China, and Iran.

Previously, the Trump administration nullified these regulations, suggesting they would stifle innovation and impose unnecessary bureaucratic burdens on companies. The Commerce Department has since expressed its commitment to ensuring secure technology exports, inspired by its Middle Eastern trade agreements.

The department reaffirmed its stance against reinstating the AI Diffusion rule, deeming it overly restrictive. It didn’t confirm or deny the current proposal which involves country-specific controls, a concept likened to the Diffusion scheme.

Furthermore, the Financial Times speculates that the Department of Commerce might make it a requirement for corporations purchasing substantial quantities of Nvidia and AMD chips to contribute towards establishing AI infrastructure within the US.

This potential regulation is in alignment with President Trump’s broader demand for foreign tech firms to invest domestically or face tariff penalties. Sources suggest it might also facilitate specific GPU export agreements similar to previous collaborations with nations such as the UAE and Saudi Arabia.

No official confirmation has been released concerning these proposals. The Register has sought commentary from the Commerce Department regarding the authenticity and intended enforcement of these draft regulations.

These developments represent yet another chapter in the US administration’s often chaotic and unpredictable trade strategy, particularly concerning technology. This January, it announced that exports of Nvidia and AMD GPUs to China would only proceed if matching supplies were guaranteed domestically. However, China is now reportedly minimizing reliance on American technology and advising local industries to halt orders for Nvidia products, following a historical pattern of fluctuating approaches meant to limit China’s access to cutting-edge AI technology.

As this situation unfolds, it remains to be seen how these developments will impact the global AI technology landscape.