No Chip Caps

In Short: The U.S. government is planning to scrap a complex Biden-era rule that would’ve limited the export of advanced AI chips to over 100 countries. Chipmakers like Nvidia and AMD are breathing a sigh of relief — for now.

What’s Going On?
The rule, meant to stop countries (especially China) from dodging export controls, had tech giants worried. Nvidia feared losing access to growing markets like India and Singapore, while AMD grumbled about red tape. Critics said the regulation was so tangled it would choke American innovation and giftwrap the global AI hardware market for China. Since whispers of the reversal began, Nvidia and AMD stocks got a nice little bump (4.4% and 3.4%, respectively). But there’s a catch — China’s still off-limits for top-tier chips, and even mid-range models now face red tape.

Insights: This backpedal hints at a broader rethink of how the U.S. regulates AI — less “Cold War clampdown,” more “let’s not shoot ourselves in the foot.” It’s a win for chipmakers eager to dominate global AI markets, but the road to China remains blocked. Washington might be loosening its grip, but the game of semiconductor chess with Beijing is far from over.

How Does This Impact Law Firms?