TECH NEWS – Nvidia, Oracle, and many other tech giants are now demanding that the Trump administration roll back its AI proliferation policies, which could have a devastating impact on the markets.

It’s as if the AI market can’t take a break from policy changes. According to Bloomberg, tech companies are asking the U.S. government not to continue the AI policy put in place under the Biden administration, which would go into effect in less than two months. If that happens, Nvidia and companies like it could see a big drop in AI-related revenue, especially since the policy would severely restrict the flow of chips to other nations.

What did Joe Biden come up with? The policy they put in place divided the countries to which Nvidia’s advanced AI GPUs could be exported into three categories. The first is a list of countries that are either consistent with U.S. national security objectives or pose no threat to the country. These countries would be free to provide the chips to themselves. The second category includes hostile nations such as Russia and Iran, which are completely banned from purchasing U.S.-origin GPUs or AI software. The third category restricts countries like India from importing large quantities of GPUs without inspection.

These countries will be allowed to import a limited amount of GPUs without inspection, and the restrictions are designed to prevent the targeted countries from building large-scale data centers capable of advanced defense research. Interestingly, key U.S. allies (including Poland and Israel) face restrictions on chip exports, raising questions about the purpose of the policy.

Under the Trump administration, the policy could take various forms, including requiring all countries to obtain an export license to purchase AI chips and limiting the volume of shipments depending on the importing country. The current administration’s main goal is to limit technology transfers to countries like China, which has continued to do so despite U.S.-imposed export restrictions.

The country’s leaders have until May 15 to act.

Source: WCCFTech