The White House just released restrictions on the global sale of AI chips and GPUs, which more than limit who can buy these chips but also tell them where to use them. This new rule has got Nvidia and the Semiconductor Industry Association (SIA) up in arms, and now the European Commission (EC) is also protesting it. However, the rule will come into force 60 days after its announcement—well into Trump’s second presidency—giving the EU and other concerned parties time to negotiate with his administration to defer or cancel it.
Ten EU members—Belgium, Denmark, Finland, France, Germany, Ireland, Italy, the Netherlands, Norway, and Sweden—would have Tier 1 status, meaning they have ‘near-unrestricted access’ to advance American AI chips. However, they must still abide by U.S. security requirements and keep at least 75% of their processing capabilities within Tier 1 countries. Although they could install the rest of their AI chips in Tier 2 countries, they cannot put over 7% of these chips in any single nation, meaning they have to spread operations to over four countries if they want to do so.
