US gov't revokes controversial AI hardware export rule that would mandate investments from foreign companies — new export rules are still in the works, though

Nvidia Hopper HGX H200.

The U.S. Commerce Department revokes a proposed export rule for AI accelerators that would require foreign operators of massive AI clusters to invest in American AI infrastructure to obtain them, effectively making them twice as expensive for entities from Asia, Europe, and the Middle East, reports Reuters. The U.S. government is still working on a new set of export rules for AI hardware developed in America, but at least the controversial proposal has now been removed from the table.

Go deeper with TH Premium: AI shortages

(Image credit: Nvidia)

• AI data centers are swallowing the world's memory and storage supply
• Chip scarcity assaults auto industry amid the worsening Nexperia and DRAM crisis
• Samsung and SK hynix shorten memory contracts as pricing power shifts back to suppliers
• Memory makers are set to earn $551 billion from the AI boom