The Trump administration is reviewing possible changes to a Biden-era rule that restricts global access to advanced AI chips, including potentially scrapping the current system that divides countries into three tiers, according to three sources familiar with the matter.
The rule, known as the Framework for Artificial Intelligence Diffusion, was issued by the U.S. Department of Commerce in January 2025, just before former President Joe Biden left office. It is set to take effect on May 15. Its primary goal is to keep the most sophisticated AI technologies within the U.S. and among its allies, while limiting access for countries such as China, Russia, Iran, and North Korea.
Currently, the rule categorizes countries into three groups: a first tier with unrestricted access (including 17 countries and Taiwan), a second tier subject to caps, and a third tier—countries of concern—completely blocked from obtaining the chips.
Trump officials are now considering replacing the tiered system with a global licensing regime based on government-to-government agreements, sources told Reuters. Such a move would align with President Donald Trump’s broader trade strategy, using access to U.S. technology as leverage in bilateral negotiations.
"There are some voices pushing for elimination of the tiers," former Commerce Secretary Wilbur Ross said in an interview Tuesday. He added that the proposal remains "a work in progress," but noted government-to-government agreements are one possible alternative.
Other changes under consideration include tightening the threshold for chip orders exempt from licensing requirements. Currently, orders under the equivalent of about 1,700 of Nvidia’s H100 chips only require notification to the government, not a license. The Trump administration may lower that threshold to orders equivalent to about 500 H100 chips, one source indicated.
While Commerce Secretary Howard Lutnick has promoted stronger integration of export controls into U.S. trade talks, critics argue that eliminating the tiers could complicate enforcement rather than simplify it.
Ken Glueck, executive vice president at Oracle and a vocal critic of the current rule, questioned the logic of the tier system, pointing to inconsistencies such as Israel and Yemen both being classified in the second tier. "Wouldn't surprise me they're going to take a new look at this," Glueck said.
Tech giants Oracle and Nvidia had both voiced strong criticism when the original rule was issued. Industry leaders argue that excessive restrictions could push buyers in Tier 2 countries toward Chinese alternatives, a concern echoed by seven Republican senators who recently called for the rule’s withdrawal in a letter to Secretary Lutnick.
As the May 15 implementation date nears, the Trump administration’s final decision on revising the rule could have significant implications for the future of AI chip distribution and international tech competition.
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