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Jon Keegan

Nvidia and other chipmakers push to stop impending “AI diffusion” rule

Unless the White House acts, a strict rule regulating the global spread of American AI technology will take effect on May 15.

Going above and beyond current export controls covering the most advanced AI hardware, the “AI diffusion” rule places countries into one of three tiers based on their geopolitical alignment in relation to the US:

- Tier 1 includes America’s closest allies: Canada, most of western Europe, Japan, Taiwan, and Australia. These countries face few restrictions on American AI technology. But the other tiers face caps on computing power exports and outright bans, depending on the country.

- Tier 2 includes India, Mexico, much of the Middle East, and most of South America. These countries would need to comply with tight US security regulations for any AI projects using American AI technology.

- Tier 3 contains US adversaries China and Russia. No chips or AI for you!

Bloomberg reports that AI chipmakers and world leaders are pushing the Trump administration to make changes to the rule before it takes effect. Companies want to shift away from formal government approval to a self-reporting mechanism for compliance.

Nvidia and Oracle both want the Trump administration to kill the rule outright, which is unlikely, according to the report.

The rule was put in place in the last weeks of the Biden administration.

- Tier 1 includes America’s closest allies: Canada, most of western Europe, Japan, Taiwan, and Australia. These countries face few restrictions on American AI technology. But the other tiers face caps on computing power exports and outright bans, depending on the country.

- Tier 2 includes India, Mexico, much of the Middle East, and most of South America. These countries would need to comply with tight US security regulations for any AI projects using American AI technology.

- Tier 3 contains US adversaries China and Russia. No chips or AI for you!

Bloomberg reports that AI chipmakers and world leaders are pushing the Trump administration to make changes to the rule before it takes effect. Companies want to shift away from formal government approval to a self-reporting mechanism for compliance.

Nvidia and Oracle both want the Trump administration to kill the rule outright, which is unlikely, according to the report.

The rule was put in place in the last weeks of the Biden administration.

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Big four airlines sink as Transportation Secretary Duffy says parts of US airspace could close if shutdown continues

The US may close parts of its airspace as early as next week if the government shutdown continues, according to comments made by Transportation Secretary Sean Duffy on Tuesday.

“If you bring us to a week from today, Democrats, you will see mass chaos. You will see mass flight delays. Youll see mass cancellations, and you may see us close certain parts of the airspace, because we just cannot manage it,” Duffy said at a news briefing on Tuesday.

The shutdown, which entered its 35th day on Tuesday, has fueled already problematic shortages of air traffic controllers. This week, airlines said 3.2 million passengers have faced delays or cancellations because of the shortages. Last week, about 13,000 air traffic controllers and 50,000 TSA agents received their first $0 paycheck amid the shutdown.

Shares of the big four US airlines all sank on Duffy’s comments, with United Airlines, American Airlines, and Delta Air Lines all down more than 5%.

power
Jon Keegan

Trump’s deal offering top Nvidia chips to China was nixed at last minute, the WSJ reports

Nvidia’s CEO, Jensen Huang, really wants to sell the chipmakers most powerful Blackwell GPUs to China. He almost had his way.

According to a report from The Wall Street Journal, President Trump was ready to put Blackwell chips on the negotiating table for his meeting with Chinese President Xi to seek relief from Chinas decision to block crucial rare earth exports to the US.

But according to the report, Trump advisers presented a unified front and were able to dissuade him from giving up the most powerful chips to China at the last minute. Secretary of State Marco Rubio, Commerce Secretary Howard Lutnick, and US Trade Representative Jamieson Greer were among those opposed to the chip deal. After the meeting, Trump said he did not talk with Xi about Nvidia’s “super duper” chips.

Reportedly those opposed to the deal cited national security concerns, as well as wanting to keep a competitive edge as China seeks to challenge the US’s current dominance of the AI industry.

But according to the report, Trump advisers presented a unified front and were able to dissuade him from giving up the most powerful chips to China at the last minute. Secretary of State Marco Rubio, Commerce Secretary Howard Lutnick, and US Trade Representative Jamieson Greer were among those opposed to the chip deal. After the meeting, Trump said he did not talk with Xi about Nvidia’s “super duper” chips.

Reportedly those opposed to the deal cited national security concerns, as well as wanting to keep a competitive edge as China seeks to challenge the US’s current dominance of the AI industry.

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