Trump Plans to Use AI Chips as a New Bargaining Chip in Trade Negotiations

On April 30th, three individuals with knowledge of the matter stated that the Trump administration is in the process of amending a regulation from the Biden era which restricts countries worldwide from obtaining artificial intelligence chips. Potential modifications involve canceling the categorization of various countries globally into several tiers in order to assist in determining the amount of advanced semiconductor a country can access. The sources indicated that these plans are still in the process of discussion and cautioned that this could undergo changes. Nevertheless, if implemented, this could create an opportunity to utilize US chips as a more potent bargaining chip in trade negotiations. The previous regulation was issued in January of this year and was intended to divide the usage rights of cutting-edge artificial intelligence chips and control the weight of certain models to maintain the most advanced computing power within the United States and its allies. Currently, the rule divides the world into three tiers. The sources said that Trump administration officials are considering abandoning the tiered access approach in the regulation and instead opting for a global licensing scheme through intergovernmental agreements. (Jinse Finance)