Nvidia’s charm on Trump leads to AI chip limit reversal

Nvidia’s efforts to curry favor with the Trump administration seemingly paid off, as the U.S. lifted export limits on U.S.-made AI chips and cracked down on anyone using Huawei’s emerging alternatives. Nvidia may be eligible to sell 500K chips a year to the UAE until 2027, based on the repeal of the AI diffusion rules.Trump’s administration tossed Biden’s “AI Diffusion Rule,” set to take effect on May 15th, sending Nvidia stock soaring and reshaping the global AI infra landscape. The announcement came as Nvidia CEO Jensen Huang joined President Trump in Saudi Arabia this week to seek AI investments for U.S. companies.Nvidia tends not to be political, but when Biden signed the Diffusion Rule into law two days before he left office, even the tech company came out with a blog post saying that this legislation would absolutely cripple America’s AI dominance. The chipmaker called it “misguided” while anticipating a return to Trump’s first-term policies that strengthened American leadership, cushioned the economy, and preserved the country’s “competitive edge in AI and beyond.”Huang says Trump’s support and encouragement accelerated U.S. chip manufacturing Nvidia’s Huang was notably one of the only U.S. tech leaders not to attend Trump’s inauguration. However, his absence does not appear to have negatively impacted their relationship. He was spotted cozying up to the president at the US-Saudi investment summit in Riyadh on Tuesday–alongside other tech leaders like Elon Musk, AMD’s Lisa Su, OpenAI’s Sam Altman, and Epic CEO Tim Sweeney.The Nvidia CEO said the company was going to build [nearly] all of its chips and “next generation technology” in the U.S. as it welcomed the Trump administration’s leadership and new direction on the industry’s policy. “Without the President’s leadership, his policies, his support, and very importantly his strong encouragement — manufacturing in the United States wouldn’t have accelerated to this pace.”–Jensen Huang, CEO NvidiaUnder Secretary of Commerce for Industry and Security, Jeffrey Kessler, also said the Trump administration would pursue a bold, inclusive strategy to share American AI technology with trusted foreign countries worldwide, “while keeping the technology out of the hands of our adversaries.” U.S. DOC rescinds Biden’s Diffusion Rule to expand the country’s global chip market Commerce Department Kills Biden-Era AI Rule, Tightens Global Chip Controls! The Department of Commerce has officially rescinded the Biden AI Diffusion Rule, citing harm to innovation and foreign relations. New export control moves include: Ban on using Huawei...— TENET RESEARCH (@tenet_research) May 13, 2025The Department of Commerce (DOC) said in a statement Tuesday that it was “rescinding the AI Diffusion Rule” on the grounds that it would have “stifled American innovation, saddled companies with onerous regulations, and undermined diplomatic relations with dozens of countries.” Kessler also criticized the previous administration’s approach, saying it attempted to impose its own “ill-conceived and counterproductive AI policies on the American people.” The rule divided the countries into three tiers, with each tier having its own level of restrictions. The Commerce Department said the rule would have damaged American innovation and diplomatic relations with numerous countries that would have been “downgraded to second-tier status.” Top-tier countries like Japan and South Korea would have continued without export restrictions, but Tier-2 regions like Mexico and Portugal would have seen a cap on the number of chips they could receive. The Commerce Department also reminded AI actors that using Huawei Ascend–the Chinese tech giant’s most advanced chip–violated U.S. export controls. It further issued a warning about the potential consequences of allowing U.S. AI chips to be used for training Chinese AI models. However, the Trump administration’s move to scrap the controversial legislation will allow Nvidia to sell its chips without limits to all countries, including China (allegedly).Your crypto news deserves attention - KEY Difference Wire puts you on 250+ top sites