U.S. reverses course on AI chip export restrictions
U.S. chipmakers like Nvidia, AMD, and Intel can now move forward with deals in regions like the Middle East.
Global trade has been on a rollercoaster. From last month's tit-for-tat tariffs to mounting export controls, the past few years have been defined by tension and disruption.
But in the span of a week, two major reversals have signalled a possible shift: first, the US and China backed down on a round of retaliatory tariffs. Now, the U.S. is stepping back from a sweeping AI export restriction that had frustrated both industry leaders and international partners.
The U.S. Department of Commerce has officially scrapped a policy that was about to impose strict limits on which countries could buy American-made AI chips. The rule, known as the “AI Diffusion Rule,” was crafted at the end of the Biden administration and was set to take effect last week.
The rule would have affected over 100 nations, including many considered U.S. allies, by requiring companies to get special approval before exporting advanced semiconductors.
Emmanuel Oyedeji
Its intent was to close loopholes in existing restrictions aimed at adversaries like China and Russia. But its scope drew heavy criticism from U.S. tech companies and friendly governments alike, who warned it would isolate the U.S. in the global AI market and push buyers toward other suppliers, possibly even China.
Instead of tightening the noose further, the administration is now signalling a shift toward a more targeted, country-by-country approach, although the exact shape of the replacement policy is still unclear. The goal: protect sensitive technologies from adversaries like China and Russia without blocking high-growth, high-value partnerships with trusted foreign markets.
The decision clears the way for U.S. chipmakers like Nvidia, AMD, and Intel to move forward with deals in regions like the Middle East, where demand for AI infrastructure is booming. It also strengthens U.S. influence in shaping the global AI landscape.
That said, China won’t be catching a break here. Export bans aimed at Chinese firms — including Huawei — remain firmly in place.
In the meantime, this reversal aims to remove a major regulatory hurdle for U.S. firms and reaffirms the country’s role as a key player in global AI infrastructure, without giving ground to its rivals.
Henry Chikwem
