NVIDIA CEO Jensen Huang once again called on the U.S. government to reconsider the export restrictions on AI chips that have been in place since the previous administration, arguing that these regulations are harming the global competitiveness of American tech companies. However, according to Reuters, the current Trump administration is looking to tighten the export of AI GPUs further, aiming to turn them into bargaining chips in trade negotiations with other countries.
"I'm not sure what the new AI diffusion law will look like, but in any case, it needs to reflect that the world has fundamentally changed since the last update," Huang stated at the Hill and Valley Forum - where business leaders and lawmakers gather to discuss technology and national security. "We need to accelerate the diffusion of American AI technology worldwide, and this needs policy support from the government."
According to the Biden administration's AI Diffusion policy framework, only companies based in the U.S. and "Tier 1" countries (a total of 18 allies) have unrestricted access to high-end AI chips like the NVIDIA H100. "Tier 2" countries are limited to about 50,000 chips per year unless they have verified end-user licenses. However, they can still import up to 1,700 chips per year without needing a license.
For countries under arms embargoes, such as China, Russia, and Macau (Tier 3), most shipments of high-end AI chips are completely prohibited. The Trump administration is currently reevaluating this tiered model to enhance clarity and effectiveness.
NVIDIA has criticized the current regulations, arguing that they promote the development of competitive hardware, software, and standards - especially in China. Therefore, Huang and NVIDIA are actively advocating for change. However, the direction of change that the Trump administration is considering does not seem to be what American tech companies are hoping for.
One proposal being considered is to replace the tiered model with a global licensing mechanism, where governments would sign specific agreements on access to AI chips. This would give the U.S. more leverage in trade negotiations. Additionally, the export limit without a license could be reduced from 1,700 chips to 500 chips.
If new regulations are implemented, NVIDIA's success will depend not on chip capabilities, but on the trade agreements that the U.S. makes with other countries. Huang also acknowledged that Huawei - the biggest competitor in China - is closely following NVIDIA.
"China is not falling behind anyone; they are right behind us," Huang said. "Undoubtedly, Huawei is one of the strongest tech companies in the world. They excel in computing power, networking technology, and software - everything needed to drive AI. They have made rapid progress in recent years."
