Trump Revises AI Chip Export Rules | Hardware restaurant | Hardware devices | Computer hardware components and their functions | Turtles AI

The Trump administration is considering a major overhaul of export restrictions on advanced AI chips, replacing the current three-tier system with a global licensing regime. The move is intended to strengthen the US’s negotiating position and control the spread of AI

Key points:

• Elimination of the three-tier system for exporting AI chips.
• Introduction of a global licensing regime based on bilateral agreements.
• Possible 500-chip H100 threshold for mandatory licensing.
• Industry criticism for potential negative market impacts.

The Trump administration is considering a major overhaul of export restrictions on AI chips introduced during the Biden era. The current system that classifies countries into three categories could be replaced by a global licensing regime based on bilateral agreements between governments, sources told Reuters. The change is intended to cement the US’s position as a leader in AI technology and use access to advanced chips as leverage in trade negotiations.

The current system, implemented in January 2025, allows unrestricted exports to about 20 allied countries, imposes blanket bans on nations such as China, Russia, Iran and North Korea, and limits exports to other countries, such as India, by requiring licenses for orders of more than 1,700 H100 chips. The Trump administration’s proposal calls for a lower threshold of 500 H100 chips, beyond which a license would be required, thus increasing export controls.

This strategy is part of a broader protectionist trade policy, aimed at strengthening national security and maintaining a competitive advantage in AI against rival countries. However, the tech industry has expressed concerns about these restrictions. Nvidia, for example, reported a loss of $5.5 billion due to export restrictions on its H20 chip, which was designed to comply with the previous restrictions. AMD also reported a write-down of $800 million. Critics have focused on the risk that such measures could push countries to look for alternatives, encouraging the growth of local manufacturers like Huawei in China.

The European Union has also expressed concerns about the restrictions imposed on member countries, believing that they could hinder the competitiveness of US companies without bringing significant benefits to national security. The debate continues, with the Trump administration preparing to finalize the changes by the May 15 deadline for the rules to take effect.

The Trump administration’s review of AI chip export rules is an attempt to tighten US control over the spread of AI globally, using the technology as a tool of foreign and trade policy.