Nvidia and AMD shipments to all nations would need US approval
TL;DR
The U.S. is proposing rules requiring approval for Nvidia and AMD to ship advanced AI chips to all nations, especially China, with export caps and restrictions to balance economic interests and national security concerns.
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Nvidia and AMD shipments to all nations would need US approval
The U.S. government is drafting rules that would require approval for Nvidia Corp. and Advanced Micro Devices Inc. (AMD) to ship advanced AI chips to all nations, with particular focus on China. Under proposed regulations, the Trump administration is considering per-customer export caps, limiting Chinese firms to 75,000 of Nvidia's H200 AI accelerators annually. AMD's MI325 chips, with comparable capabilities, would also count toward these caps, effectively constraining access for major Chinese tech companies like Alibaba Group Holding Ltd. and ByteDance Ltd. According to proposed regulations. Total U.S.-approved shipments to China could reach up to 1 million units, but individual firm limits would concentrate availability among a small number of buyers, far below initial demand as reports indicate.
The rules would extend U.S. export control authority, requiring exporters to certify that chips won't benefit China's military or reduce availability for American companies under the proposed framework. These measures aim to balance economic interests—such as tax revenue and maintaining U.S. semiconductor leadership—with national security concerns over China's AI development. Nvidia and AMD shares fell following the news, reflecting market uncertainty according to financial data.
Implementation hinges on Trump's planned meeting with Chinese President Xi Jinping, where a deal for H200 exports to nonmilitary Chinese entities is under discussion as part of ongoing negotiations. However, restrictions on overseas deployment of U.S. chips and stringent compliance requirements complicate broader adoption. Chinese firms have historically prioritized domestic use over external cloud services due to supply constraints, a dynamic that may persist under the proposed rules according to industry analysis.
The outcome remains uncertain, with U.S. officials navigating competing priorities: supporting Nvidia's global market position while curbing technology transfer risks. Final regulations could reshape AI infrastructure competition between U.S. and Chinese firms, with significant implications for semiconductor trade dynamics.
