Trump administration weighs major changes to Biden-era AI chip export rule

The Trump administration is considering sweeping changes to a Biden-era regulation that limits global access to advanced artificial intelligence (AI) chips, sources familiar with the discussions said.

The rule, called the Framework for Artificial Intelligence Diffusion, was issued by the US Department of Commerce in January, shortly before President Biden left office.

It divides the world into three tiers to control which countries can access cutting-edge AI chips, such as Nvidia’s H100. Countries in Tier 1, including 17 US allies and Taiwan, face no restrictions.

Tier 2 countries are subject to volume caps, while countries of concern—like China, Russia, and Iran—are banned entirely.

Trump officials are now discussing scrapping the tiered system in favor of a global licensing regime based on government-to-government agreements.

Such a move would align with President Trump’s broader strategy of negotiating bilateral trade deals and could strengthen the US’s position in trade talks by using chip access as leverage.

“There are some voices pushing for elimination of the tiers,” former Commerce Secretary Wilbur Ross said. “It’s still a work in progress.”

The administration is also weighing changes to licensing thresholds. Under current rules, orders below the equivalent of 1,700 Nvidia H100 chips require only notification.

Trump’s team may lower that threshold to 500 chips, one source said.

Critics, including Oracle and Nvidia, argue the rule may push countries to buy from China, while some lawmakers warn it could backfire.

Seven Republican senators have urged the Commerce Department to withdraw the rule, citing national security and competitiveness concerns.

The rule takes effect May 15. A Commerce Department spokesperson declined to comment.