Nvidia falls on report of US government drafting regulations restricting AI chip exports

According to Bloomberg, the Trump administration will propose regulations that would require US government approval for AI chip shipments worldwide, expanding existing export controls that currently apply to roughly 40 countries.

Nvidia and AMD both dropped on the news that the government would essentially act as a “gatekeeper for the AI industry,” though approval processes will vary and ramp up in complexity with the size of the order, and would only require the involvement of the host country’s government “for truly massive deployments,” Bloomberg’s sources said. Bloomberg added that exports for the largest projects would be approved only for US allies that make stringent security commitments and “matching” investments in American AI, though the draft rule does not specify what that investment ratio would be.