The U.S. Department of Commerce is considering sweeping new regulations that would require companies like Nvidia and Advanced Micro Devices (AMD) to obtain government approval before exporting artificial intelligence (AI) chips to any country worldwide, according to reports surfacing this week.
The proposed rules, first reported by Bloomberg, represent a significant escalation of existing export controls and extend potential restrictions beyond previous measures largely focused on China. The regulations would establish a tiered licensing system, with scrutiny levels dependent on the scale of chip shipments. Deployments of 1,000 GPUs or less would face a cursory review, while larger shipments – 200,000 GPUs or more – would require certifications from the host country’s government, according to sources familiar with the plan.
The move comes as the Trump administration seeks to address national security concerns related to the proliferation of AI technology. Officials are reportedly concerned that advanced AI capabilities could be used to enhance the military or surveillance capabilities of potential adversaries. The Financial Times reported that the U.S. Is likewise considering tying AI chip exports to commitments of foreign investment in the United States.
Nvidia shares fell sharply on the news, dropping as much as 4% in trading Wednesday, reflecting investor anxieties about the potential impact on the company’s global sales. The previous round of export controls imposed on China in 2023 proved costly for Nvidia, disrupting its business in a key market and leading to a significant revenue decline. Sales to China have not yet resumed.
The proposed regulations would apply to all AI chips, regardless of destination, a departure from previous policies that primarily targeted specific countries. Wccftech reported that the focus of the new regulations is on the compute power being shipped, rather than simply the number of chips.
AMD has also been actively working to expand its presence in the AI chip market, recently announcing a multi-billion dollar deal with Meta to supply chips for its AI infrastructure, as reported by the New York Times. The new export controls could potentially impact AMD’s ability to capitalize on this growing demand.
The Department of Commerce has not yet publicly announced the proposed regulations, and the details remain subject to change. As of Thursday, the agency had not responded to requests for comment regarding the timeline for implementation or the specific criteria that would be used to evaluate export license applications.
