The Trump administration is considering requiring global companies, and in some cases their home countries, to seek US approval before purchasing AI chips from the likes of Nvidia (NVDA) and AMD (AMD).
According to Bloomberg, the permitting process, which is still under deliberation, would depend on how many chips a company is looking to buy. Those aiming to buy 1,000 chips would face a relatively easy review, while those seeking larger shipments may have to agree to site visits by US representatives.
Companies seeking to purchase several hundred thousand GPUs would need to involve their home country’s government. Those kinds of shipments could only be made to US allies and would require the companies to make security promises and invest in American AI.
AMD stock fell more than 2% on the news, while Nvidia stock dropped more than 1%.
The rules, if adopted, would be the US’s latest step toward controlling the export of its prized AI chips. Nvidia and AMD’s processors are among the most sought-after processors in the world, thanks to their high-performance capabilities in both training and running AI models.
The Trump and, before it, Biden administrations have been working to find a way of getting America’s chips into the hands of global companies, while keeping them from ending up in rival nations’ data centers. But it’s been a difficult task.
The White House’s repeated back-and-forth with China over the use of Nvidia’s chips has pushed that country to develop its own AI chips in the hopes that it can outmaneuver the US’s grip on the high-end processor market.