Trump is Rewriting How the U.S. Treats AI Chip Exports--and the Stakes Are Enormous

Early this year the Chinese company Deepseek revealed that it had developed a very powerful model mostly using Nvidia chips obtained before the Biden administration closed an export loophole in 2023, heightening the intensity of the race. Last week, the Trump administration ripped up those rules, with a spokesperson calling them "overly complex, bureaucratic" and saying they "would stymie American innovation." They then switched to a new tack: linking countries' access to AI chips with larger trade negotiations. Transitioning to a negotiation-based approach, the administration argued, could allow for more flexibility from country-to-country and allow Trump to secure key business concessions from Middle Eastern partners. Business and governments in the Middle East have massive ambitions for AI, aiming to position themselves at the forefront of this emerging technology.