White House Faces Imminent Deadline To Finalize AI Diffusion Rule
The flags of China and the USA are being displayed on a smartphone, with an NVIDIA chip visible in ... More the background, in this photo illustration in Brussels, Belgium, on December 30, 2023. (Photo by Jonathan Raa/NurPhoto via Getty Images) NurPhoto via Getty Images
One of the final actions taken by the Biden administration was to release new export controls, commonly referred to as the AI Diffusion rule. The regulations would impose new restrictions on selling certain advanced chips used for artificial intelligence and some 'closed AI model weights.' The rules are intended to increase the U.S.'s control of the use of its technology in the development of AI globally by creating a three-tier system where each level is subjected to different standards. The U.S.'s closest allies and partners were exempted from the rules, while adversaries like Russia and China were effectively blocked from receiving the restricted goods. This left a wide swath of countries in the middle facing restrictions, which could be lessened by agreeing to specific safety and security measures led by the U.S.
While the primary target for the new restrictions was China, imposing global limits was seen as necessary to cut down on Chinese companies' ability to rely on the use of subsidiaries in countries not facing American export controls, which could then pass the restricted chips back into China, as documented by The Wall Street Journal . Although the rule would likely not have solved this issue entirely, the Biden administration believed it would make this process more difficult by expanding the countries facing license requirements for shipments of these advanced AI chips.
The rule was released as an interim final rule, meaning it can take effect immediately, but compliance with some parts was delayed while public comment was taken. The most significant looming date is May 15, when the export restrictions will take effect. The fast-approaching deadline has led some companies, including Nvidia and Oracle, to pull orders forward to enable customers to receive the potentially restricted goods shipped before the new rules come into force, according to The Information .
The proposal has seen significant pushback from tech companies and foreign leaders, as reported by Bloomberg . Still, the Trump administration is not expected to eliminate it. How exactly the White House will finalize the regulations has yet to be settled despite the fast-approaching date for compliance. If no changes are made, the rule would simply go into effect as written. However, the Trump administration has signaled an interest in simplifying and tightening the regulations. However, senior officials have not spoken on the record about the rule much, creating significant uncertainty about what will happen in the coming days.
The White House is primarily considering simplifying the rules by removing the three tiers created in the initial proposal. Instead, according to Reuters , this would be replaced 'with a global licensing regime with government-to-government agreements.' This change would appeal to President Donald Trump's preferences for bilateral negotiations, and these deals could be incorporated into the ongoing discussions over reciprocal tariffs. What is uncertain under this plan is what the limits on countries would be until these deals are reached, and whether there would be no restrictions or all countries face the tightest limits until agreements are secured.
The other significant change that the Trump administration is considering is to tighten the rules , according to Bloomberg . The main way of doing so would be to lower the threshold for which licenses are required, according to Reuters . Under the current proposal, licenses are required to sell computing power equivalent to about 1,700 of Nvidia's H100 chips. The change under consideration would lower this to the equivalent of about 500 H100 chips. This would be a significant reform and is motivated by being better able to crack down on the issue of China receiving otherwise restricted semiconductors through other countries.
Although there is generally an expectation that the White House will act to adjust these rules before the deadline, the regulations may instead be allowed to take effect as written. The expected revisions would then come later. This approach could solve the issue of how to handle the time before bilateral deals are reached and provide a runway before the standards are tightened. However, it would not immediately address the Trump administration's goal of simplifying the regulations, which could make this strategy a nonstarter.
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Politico
16 minutes ago
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In the streets
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Newsweek
16 minutes ago
- Newsweek
Videos, Pictures Show Aftermath of Iranian Strikes on Tel Aviv
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Israeli authorities triggered alerts for renewed missile attacks on Sunday, including around Tel Aviv, after Iranian missiles destroyed buildings overnight and killed at least 10 people, as President Donald Trump urged both sides to "make a deal." Why It Matters Israel launched the first of a series of airstrikes across Iran late on Thursday, U.S. time, a "preemptive" campaign it said was needed to take out Iran's nuclear facilities, its ballistic missile stockpile and other military sites. An Iranian official said 78 people were killed and more than 300 injured in Tehran as Israel declared a state of emergency and prepared for Iran's response. An image shared by Israeli authorities after overnight strikes by Iran on the country, including central Tel Aviv. An image shared by Israeli authorities after overnight strikes by Iran on the country, including central Tel Aviv. Israel Police Tehran then launched waves of drone and missile strikes on Israeli territory. Israel said it had intercepted "most" of the missiles and uncrewed aerial vehicles. Both sides have continued firing at one another in the days since. Iran canceled planned negotiations with the U.S. on its nuclear program on Sunday, and both sides indicated they would launch further strikes. Trump wrote ion Truth Social that "many calls and meetings now taking place" to secure "PEACE, soon, between Israel and Iran." The fate of the talks is not clear. Tonight, once again, the Iranian regime deliberately targeted Israeli civilians as they slept. 8 people killed, including 4 children. Over 200 injured. 35 still missing. Families torn apart. Iran targets innocents. Israel targets nuclear and military sites - to stop the world's… — Israel Foreign Ministry (@IsraelMFA) June 15, 2025 What To Know The Israeli military said on Sunday afternoon local time that sirens were sounding across the country after Iran launched an unspecified number of missiles. Local media later reported the alerts had ended. Iranian state media said the military had attacked the Israeli cities of Tel Aviv, Haifa, in the north, and Ashkelon in the south. At least seven people were killed and more than 100 injured when an Iranian ballistic missile hit Bat Yam, just south of Tel Aviv, overnight on Sunday, domestic media reported. Other reports put the death toll at six people. Israel's police said residential buildings took a "direct hit that caused extensive damage." Fresh alerts were activated in Israel on Sunday afternoon after Iranian overnight strikes targeted southern Tel Aviv. Fresh alerts were activated in Israel on Sunday afternoon after Iranian overnight strikes targeted southern Tel Aviv. Israel Police Another four people were killed in Tamra, a Palestinian-Israeli town in Israel's north, authorities said. A total of 13 people have been killed in Israel since Friday, and nearly 400 more injured, Israeli authorities said. Nine of the injured were reported to be in a serious condition. Renewed explosions were also reported in the Iranian capital on Sunday afternoon. Initial reports suggested several bombs had detonated in Tehran. An Israel Defense Forces spokesperson declined to confirm or deny Israeli involvement. Israel's armed forces had warned Iranians close to military sites to immediately leave the area. Lieutenant Colonel Nadav Shoshani, a spokesperson for the Israeli military, said in a briefing at 5 p.m. on Sunday (10 a.m. ET) that Israeli warplanes had been operating in Iranian airspace for more than 50 hours. A total of 13 people have been killed in Israel by Iranian strikes since Friday, Israeli authorities said on Sunday. A total of 13 people have been killed in Israel by Iranian strikes since Friday, Israeli authorities said on Sunday. Israel Police Israel established a "safer route" for the aircraft to use in targeting Iran, Shoshani said. The Israeli military is continuing to target nuclear sites and infrastructure, as well as other military targets. Iran still has hundreds of ballistic missiles to use, Shoshani said. The U.S. and Israel view the possibility of Iran gaining a nuclear weapon as unacceptable. Israel said it had launched its strikes on Friday because it believed Tehran would have a nuclear weapon "in a very short time." Tehran has maintained its nuclear development is peaceful, but the U.N.'s nuclear watchdog, the International Atomic Energy Agency (IAEA) warned it has dramatically increased uranium enrichment to levels very close to what would be needed to produce a weapon. The IAEA said on Thursday Iran was not cooperating with its nuclear obligations for the first time in two decades. Trump has threatened Iran with "bombing the likes of which they have never seen before" if it does not ink a deal limiting its program. The president said on Friday he had given Iran "chance after chance to make a deal." What People Are Saying Iran's Foreign Minister, Abbas Aragchi, said on Saturday that talks between Iran and the U.S. on the nuclear program were "unjustifiable" while Israeli strikes continued. What Happens Next Trump said on Sunday: "Iran and Israel should make a deal, and will make a deal."
