(Image credit: Nvidia) Nvidia CEO Jensen Huang has once again called the U.S. government to revise the previous administration's AI processors export restrictions, arguing that these regulations hinder American companies from fully participating in global markets, according to a report from Bloomberg. However, the current administration seems to disagree, as it plans to further restrict exports of AI GPUs so it can use them as bargaining chips when negotiating trade deals with other nations, according to Reuters. "I am not sure what the new AI Diffusion Rule is going to be, but whatever happens to be, it it really has to recognize that the world has changed fundamentally since the previous AI diffusion rule was was released," Huang said at the Hill and Valley Forum, where business leaders and lawmakers gather to discuss technology and national security, according to Bloomberg Podcasts. "We need to accelerate the diffusion of American AI technology around the world, so the policies and encouragement from the administration really need to be behind that."According to the AI Diffusion framework introduced by the Biden administration, access to advanced AI chips such as Nvidia’s H100 is only unrestricted for companies based in the U.S. "Tier 1" nations (a group of 18 allied nations). Those located in "Tier 2" nations face annual limits, capped at roughly 50,000 units of H100-class processors, unless they obtain verified end user (VEU) approval. (However, firms from Tier 2 regions can import up to 1,700 units per year without requiring an export license — these smaller purchases do not count toward the 50,000-unit national cap.)For countries under arms embargoes — "Tier 3" — including China, Russia, and Macau, nearly all shipments of advanced AI processors are effectively barred. The Trump administration is currently evaluating this tiered structure to enhance its clarity and enforceability.Nvidia has criticized Biden's AI Diffusion Rule, saying that restrictions of American GPU exports will support development and proliferation of competing hardware, software, and standards — specifically those developed in China. Therefore, Nvidia and its CEO have been advocating for change. While the Trump administration agrees that change is needed, it looks like it may not be the change Nvidia and other American hardware developers are hoping for.Under the proposed revisions, the tiered model may be replaced by a global licensing regime involving formal agreements between governments. This would enable the U.S. to negotiate access on a case-by-case basis, giving the U.S. government more leverage in trade discussions. Officials are also considering a change to the volume of chips that can be exported without formal approval. Currently, shipments of less than 1,700 H100-class units can be made with only a notification; this threshold may be lowered to 500 units.Former U.S. Secretary of Commerce Wilbur Ross confirmed this approach is under consideration, though no decisions have been finalized, according to Reuters.If the new rules are applied, Nvidia's success will depend not on the capabilities and performance of its GPUs, but rather on trade deals inked between the U.S. government and other nations. Needless to say, at least some nations might prefer to deal with China's Huawei — which is just behind Nvidia, according to Huang."China is not behind anybody, China is right behind us, we are very, very close," Huang said. "There is no question that Huawei is one of the most formidable technology companies in the world, and they are incredible in computing, they are incredible in networking technology, and in software capabilities, all of the essential capabilities to advance AI. And they have they've made enormous progress in the last several years."Follow Tom's Hardware on Google News to get our up-to-date news, analysis, and reviews in your feeds. Make sure to click the Follow button.Stay On the Cutting Edge: Get the Tom's Hardware NewsletterGet Tom's Hardware's best news and in-depth reviews, straight to your inbox. TOPICS Huawei