{"id":1295263,"date":"2025-05-19T08:48:29","date_gmt":"2025-05-19T03:18:29","guid":{"rendered":"https:\/\/trak.in\/stories\/?p=1295263"},"modified":"2025-05-19T08:49:04","modified_gmt":"2025-05-19T03:19:04","slug":"indian-ai-startups-can-now-get-more-nvidia-chips-find-out-why","status":"publish","type":"post","link":"https:\/\/trak.in\/stories\/indian-ai-startups-can-now-get-more-nvidia-chips-find-out-why\/","title":{"rendered":"Indian AI Startups Can Now Get More Nvidia Chips: Find Out Why?"},"content":{"rendered":"\n

The United States has officially revoked the controversial \u201cAI diffusion rule\u201d that previously restricted the export of advanced AI chips.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

This policy change is expected to immediately benefit the U.S. technology sector, which plays a critical role in the national economy.<\/p>\n\n\n\n

United States Officially Revokes the Controversial \u201cAI Diffusion Rule\u201d<\/strong><\/p>\n\n\n\n

The rule’s removal enables countries like India to gain greater access to Nvidia chips without arbitrary restrictions.<\/p>\n\n\n\n

David Sacks, the new White House lead on AI policy, announced the rollback during the Saudi-US Investment Forum, saying<\/a>: \u201cThe Trump administration has just announced that we will be rescinding what’s known as the Biden diffusion rule… it literally restricted the diffusion or proliferation of American technology all over the world.\u201d<\/p>\n\n\n\n

The AI diffusion rule was introduced in the final days of the Biden administration as part of efforts to limit<\/a> China\u2019s access to advanced AI technology.<\/p>\n\n\n\n

The rule categorized countries into three tiers and placed limits on AI chip exports, even to non-adversarial nations.<\/p>\n\n\n\n

Although the rule never fully took effect, it sparked concern among global governments and semiconductor companies.<\/p>\n\n\n\n

President Donald Trump\u2019s administration has now officially canceled the rule, viewing it as a step toward strengthening alliances.<\/p>\n\n\n\n

The reversal is intended to ensure that U.S. technology doesn’t fall into the hands of adversaries like China, but without alienating allies.<\/p>\n\n\n\n

The Biden-era policy faced criticism for applying a broad and insensitive approach by treating friendly nations\u2014like Mexico, Portugal, and India\u2014as \u201csecond-tier\u201d countries.<\/p>\n\n\n\n

These nations were to face chip import quotas that would have hampered their AI growth.<\/p>\n\n\n\n

Nvidia and AMD Opposed the Policy<\/strong><\/p>\n\n\n\n

Leading chipmakers such as Nvidia and AMD argued the policy was harmful to business and might drive allies toward China for technology alternatives.<\/p>\n\n\n\n

Under Secretary of Commerce Jeffrey Kessler criticized the old policy, stating: \u201cWe reject the Biden administration\u2019s attempt to impose its own ill-conceived and counterproductive AI policies on the American people.\u201d<\/p>\n\n\n\n

Kessler also emphasized a new direction focused on an \u201cinclusive strategy\u201d to share AI technology with trusted partners.<\/p>\n\n\n\n

The withdrawal allows India greater freedom to import Nvidia chips\u2014key to its growing AI initiatives in both public and private sectors.<\/p>\n\n\n\n

Although no formal deals with India have been announced yet, the policy shift signals potential for deeper U.S.\u2013India AI cooperation.<\/p>\n\n\n\n

Under the new rules, U.S. restrictions will now focus solely on adversarial states, relieving allies of burdensome export limits.<\/p>\n\n\n\n

The policy shift is already leading to major deals, such as Nvidia\u2019s new partnership with Saudi Arabia\u2019s AI startup Humain.<\/p>\n\n\n\n

As part of this deal, Nvidia will ship 18,000 of its latest Blackwell GB300 chips to power a 500-megawatt data center in Saudi Arabia.<\/p>\n\n\n\n

Nvidia CEO Jensen Huang said: \u201cAI, like electricity and internet, is essential infrastructure for every nation.\u201d He added that the collaboration aims to help Saudi Arabia fulfill its national vision.<\/p>\n\n\n\n

David Sacks further defended the policy reversal by stating: \u201cDiffusion is not a risk with a friend like Saudi Arabia,\u201d highlighting that the previous rule misjudged the nature of AI chip exports and unfairly targeted allied nations.<\/p>\n","protected":false},"excerpt":{"rendered":"

The United States has officially revoked the controversial \u201cAI diffusion rule\u201d that previously restricted the export of advanced AI chips. This policy change is expected to immediately benefit the U.S. technology sector, which plays a critical role in the national economy. United States Officially Revokes the Controversial \u201cAI Diffusion Rule\u201d The rule’s removal enables countries […]<\/p>\n","protected":false},"author":25,"featured_media":1295269,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[22],"tags":[271,1717],"class_list":["post-1295263","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology","tag-ai","tag-nvidia"],"acf":[],"yoast_head":"\nIndian AI Startups Can Now Get More Nvidia Chips: Find Out Why? - Trak.in - Indian Business of Tech, Mobile & Startups<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/trak.in\/stories\/indian-ai-startups-can-now-get-more-nvidia-chips-find-out-why\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Indian AI Startups Can Now Get More Nvidia Chips: Find Out Why? - Trak.in - Indian Business of Tech, Mobile & Startups\" \/>\n<meta property=\"og:description\" content=\"The United States has officially revoked the controversial \u201cAI diffusion rule\u201d that previously restricted the export of advanced AI chips. This policy change is expected to immediately benefit the U.S. technology sector, which plays a critical role in the national economy. 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