AI Chip Access: Trump's Strategic Shift

The Trump administration is considering changing a Biden-era rule that limits global access to AI chips. The proposal might abolish the tier system that categorizes countries' access and replace it with government-to-government agreements, potentially using U.S. chips as leverage in trade negotiations.

The Trump administration is reportedly revisiting a significant rule from the Biden era concerning AI chip distribution worldwide. The existing framework sorts countries into tiers, affecting their access to advanced semiconductors. However, insiders suggest that this tiered strategy might be scrapped in favor of a universal licensing approach.

Insiders aware of the discussions indicate that such changes could position U.S. AI chip technology as a pivotal element in broader trade negotiations. The rule, designed to maintain U.S. supremacy in AI technology, particularly aims to restrain exports to nations like China and Russia, which are seen as potential threats.

Critics of the current rule, including prominent industry figures from Oracle and Nvidia, have voiced concerns that the restrictions might drive nations to source AI technology from Chinese alternatives. The proposed changes, under discussion, signal a potential reevaluation of how the U.S. navigates its technological and political alliances.

(With inputs from agencies.)