Trump's AI Chip Curbs Face Pushback From Tech and Allies

2025-03-26 general

Washington, Wednesday, 26 March 2025.
The Trump administration is under pressure to rethink its global semiconductor strategy. Tech giants and foreign leaders are concerned about the impact of AI chip export controls. Nearly 20 of America’s allies in Europe and East Asia currently enjoy largely unrestricted access to these critical components. Nvidia and other corporations are protesting the new rules. These restrictions could hinder AI development and investment in allied nations, potentially reshaping the global tech landscape.

AI diffusion rule

The Trump administration faces mounting pressure to reconsider the AI diffusion rule [1]. This rule restricts the quantity of AI processors that can be exported to numerous countries [1]. Nvidia and other tech companies have voiced strong opposition [1]. U.S. allies, including Israel and Poland, are also concerned [1]. They worry about the potential impact on their chip supplies and attractiveness for AI investment [1]. The rule, initiated by the Biden administration, is now under scrutiny as the Trump administration weighs its options [4].

Lobbying efforts

Numerous governments and corporations are actively lobbying the Trump administration to ease these regulations [4]. They are acting before the public comment period concludes [4]. Internal disagreements within the administration persist regarding the appropriate path forward [4]. It remains unclear which viewpoints will ultimately prevail in the decision-making process [4]. Some officials are suggesting the removal of the three-tiered system and computational limits [4]. However, they want to maintain the fundamental requirement for export licenses [4].

Potential impacts on companies

If the Trump administration upholds the existing framework, American chip exports could become a geopolitical tool [4]. This could reshape digital infrastructure strategies in various regions [4]. Companies like Oracle, which are expanding overseas, may face challenges [4]. Sources indicate that any restrictions would negatively affect Nvidia and Oracle [4]. Oracle’s plans to invest $6.5 billion in a Malaysian data center could be hindered by these restrictions [4].

Company reactions

Nvidia and Oracle are advocating for the complete removal of the AI diffusion rule [5]. They want to restart the regulatory process [5]. Nvidia’s CEO, Jensen Huang, emphasized the need for informed policymaking [4]. Google has also voiced concerns, stating that the rules disproportionately burden American cloud service providers [4]. Microsoft executives cautioned against placing allies in a disadvantageous position [4]. These companies face a compliance deadline of May 15 [5].

Geopolitical implications

The United Arab Emirates has pledged to invest $1.4 trillion in the U.S. over the next decade [4]. This pledge followed discussions between UAE’s National Security Advisor and President Trump [4]. Poland, which has received data center investments from Google and Microsoft, fears that computational power limits could disrupt these projects [4]. The Polish President has discussed the issue with Trump and U.S. Commerce Secretary, who promised to consider revisions [4].

Bronnen

AI chips Trade restrictions