US moves to close potential AI chip sales loophole

The Trump administration is moving to close a potential loophole in U.S. export restrictions, clarifying that a license is needed to sell advanced AI chips to firms with Chinese parent companies even if they are not located in China or another restricted country.

The Commerce Department on Sunday issued new guidance about a 2023 licensing rule, saying it had received questions about whether portions of the requirement are still being enforced.

The 2023 rule sought to update earlier restrictions on chip exports issued by the Biden administration.

However, confusion emerged following the rollout and later rescission of the AI diffusion rule, a Biden-era framework that sought to create a tiered system to determine how many advanced AI chips countries could purchase.

The diffusion framework, put forward in the........

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