AI Power Grab: Trump Faces Global Backlash Over Chip Curbs That Could Reshape Tech Dominance
25 March 2025 – The clock is ticking on a controversial U.S. chip export ruleand the pressure is intensifying. Nvidia (NASDAQ:NVDA), Oracle (NYSE:ORCL), and a growing number of allied nations are urging the Trump administration to roll back the so-called “AI diffusion rule” before it takes effect on May 15. First introduced during Biden’s final week in office, the rule limits the export of AI chips to most of the world, aiming to keep advanced computing power concentrated among close U.S. allies. But companies argue it could back fireslowing growth abroad and pushing global players toward non-U.S. alternatives with little gain for national security.
The current framework splits the world into three tiers: top-tier allies get mostly unfettered access; adversaries like China and Russia are cut off entirely; and everyone elsefrom Southeast Asia to the Middle Eastis caught in the middle. That includes countries like Israel, Poland, India, and the UAEeach with significant AI ambitions and ongoing data center projects. Leaders across these regions have launched direct appeals to Trump’s cabinet. Some are promising tighter tech standards, others hinting at policy trade-offs. But for hyperscalers like Oracle, the caps are already problematic: a $6.5 billion data center push in Malaysia could breach limits baked into the rule, though this remains unconfirmed.
Inside Washington, views remain split. Some officials want minor tweakssuch as adjusting shipment size thresholds while others are floating a broader overhaul. Nvidia is pushing for a full reset, warning that the restrictions could fracture global demand and hurt U.S. leadership in AI infrastructure. Trump officials are reportedly still far from consensus, and it’s unclear which voices will carry the most weight. What’s clear: this isn’t just about chips anymoreit’s about who controls the future of AI.
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AI Power Grab: Trump Faces Global Backlash Over Chip Curbs That Could Reshape Tech Dominance, source
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