The rule will prevent U.S. chips from passing to China through countries loosely allied or not politically allied with the U.S.

The Biden administration is proposing a new framework for the exporting of the advanced computer chips used to develop artificial intelligence, an attempt to balance national security concerns about t

Global data centers are filling up with GPUs and Nvidia has so far claimed an estimated 90% of that market share. Highly complex chips like GPUs are largely manufactured in Taiwan, but most of the companies that design them are based in the US and so their products are within the Department of Commerce's jurisdiction.

Biden officials made clear it would be up to the incoming Trump administration to follow through with or drop the new rules.

The latest selloff in Nvidia and other chips stocks could prove short-lived, with the incoming Trump administration likely to take a more relaxed approach to AI controls.