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We just got um some headlines coming out of bloomberg story that they are reporting here um that the so-called AI diffusion rule will not be enforced by the Trump administration when it takes effect on May 15th. We are seeing a sharp upward move in shares of Nvidia as a result of this. This is being reported by Bloomberg again they are citing people familiar with the matter. They are saying that the administration then plans to rescind some of the AI chip curbs that were put in place by the Biden administration. They are trying to basically change the semiconductor trade restrictions and rules here. Um and it it's not clear exactly what the timeline is working is is looking like, but again according to this report from Bloomberg, Trump officials are working toward a new rule they say that would strengthen the control of chips abroad. So it doesn't sound like export controls would go away.

but it sounds like they would perhaps change and just want to read a statement from the Commerce Department's Bureau of Industry and Security that was provided to Bloomberg by a spokesperson. It says quote, the Biden AI rule is overly complex, overly bureaucratic and would stymie American invasion. We will be replacing it with a much simpler rule that unleashes American innovation and ensures American AI dominance. Again, that doesn't make it sound like we know exactly what will happen and the Commerce Department is going to enforce the export curbs that exist while they're developing this new um situation. But um whatever the case is uh Dan um this has been something that we know that Jensen Huang, the CEO of Nvidia has lobbied hard for um for these restrictions to be removed. So interesting that this is this happening now.

Not not just Jensen some Republican senators have come forward saying that they wanted this this looked at and and kind of rescinded. The big deal here was that it was going to create three different buckets of availability for GPUs. There's uh you know, first tier allies where they can get what they want. There's second tier users or countries that would need to have licenses to be able to get access to chips. And then there's basically the arms embargo countries uh that wouldn't be able to get access to this. So uh it really is something where, you know, companies were concerned about this potentially limiting their ability to get AI chips to the right people, limiting AI research. Uh and then on top of that uh annoying allies basically uh that

To your point on that. And that is Bloomberg pointing out. I mean just in terms of the timing of when this noting that this is coming as Trump is getting ready to take this trip to the Middle East. Whereas they point out countries like Saudi Arabia, the UAE have been none too happy about the restrictions in place on their ability to get their hands on these AI chips.

Right.

Right. Your point.

It's it's something that I think, you know, has been debated heavily as to whether it's it's actually something that would work well. Uh again, the idea of stymying development of AI. Uh obviously, there's huge incentive for for chip companies to want to do away with these kinds of rules. Uh but then there's the the the flip side is, okay, does that mean that you know, research abroad uh and in the US companies that do research abroad as well as in the US, are they going to be able to do that? Get access to the right people in different countries? So, you know, I think there's there's going to obviously be as Julie, you know, you kind of pointed to. There there's going to be some kind of of restriction. Um but you know, it it there was talk of potentially at one point doing each individual company or country coming together with the US to have their own kind of agreements. That seems like it would be even more onerous. So we'll just have to see what they come up with, but I mean, obviously, you know, when it comes to AI chips, it's no longer just about our do people want them, it's should people get them when it comes to Washington.

Right. Yeah.