r/wallstreetbets • u/s1n0d3utscht3k • 19h ago
Biden to Further Limit Nvidia, AMD AI Chip Exports News
https://www.bloomberg.com/news/articles/2025-01-08/biden-to-further-limit-nvidia-amd-ai-chip-exports-in-final-pushPresident Joe Biden’s administration plans one additional round of restrictions on the export of artificial intelligence chips from the likes of Nvidia Corp. just days before leaving office, a final push in his effort to keep advanced technologies out of the hands of China and Russia.
The US wants to curb the sale of AI chips used in data centers on both a country and company basis, with the goal of concentrating AI development in friendly nations and getting businesses around the world to align with American standards, according to people familiar with the matter.
The result would be an expansion of semiconductor caps to most of the world — an attempt to control the spread of AI technology at a time of soaring demand. The regulations, which could be issued as soon as Friday, would create three tiers of chip trade restrictions, said the people, who asked not to be identified because the discussions are private.
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u/ProfessorCommenter 19h ago
Tuesday apocalyptic selling volume explained.
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u/havnar- 18h ago
Nancy!!!
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u/potatorunner 16h ago
nancy on robinhood while shes laying in bed recovering from her shiny new hip replacement
"damp it"
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u/fomoandyoloandnogrow Poor IRL but rich in flair 16h ago
If all that selling was cause they knew, it’s priced in then :4271::4267: right?
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u/ProfessorCommenter 15h ago
Probably not. Now everyone else knows.
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u/motivated_loser 13h ago
So will probably drop 0.5 points and then back to ath in a few weeks?
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u/WackFlagMass 3h ago
/r/NVDA_stock fanboys just cant get a break with the stock ever going past 150 lol
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u/atape_1 18h ago
Notice something missing? Just joking, nobody misses Intel.
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u/ZepperMen 16h ago
I bought it at 24 and held when it topped at 55.
What the fuck are they doing man...
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u/s1n0d3utscht3k 19h ago
At the top level, a small number of US allies would maintain essentially unmitigated access to American chips. A group of adversaries, meanwhile, would be effectively blocked from importing the semiconductors. And the vast majority of the world would face limits on the total computing power that can go to one country.
Countries in the last group would be able to bypass their national limits — and get their own, significantly higher caps — by agreeing to a set of US government security requirements and human rights standards, one of the people said. That type of designation — called a validated end user, or VEU — aims to create a set of trusted entities that develop and deploy AI in secure environments around the world.
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u/Hunt2244 18h ago
I’m curious why is Portugal tier 2?
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u/vimspate 19h ago
My start up idea.
- Start a company in Blue countries.
- Get as many advance chip you want from NVIDIA.
- Sell it to Red countries at higher price.
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u/link_dead 19h ago
BIG OOOOOF, the correct plan:
- Start a company in Blue countries.
- Get as many advance chip you want from NVIDIA.
- Sell it to Yellow countries at higher price.
- Yellow countries sell to Red countries at higher price, you get percent kick back from sale.
You fail to understand the market dynamics...and for that reason I am out.
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u/Adventurous-Chart-40 19h ago edited 17h ago
Nah, hear me out:
Start a company in red countries.
Get big buck subsidies from the government.
Buy advanced chips from black markets.
Carefully scrub labels off and rebrand them.
Grab the money and immigrate to the blue countries.
That’s what happened and has been happening in China.
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u/link_dead 18h ago
Yea except for the part where they scrub the labels off LOL.
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u/Adventurous-Chart-40 17h ago
Then get into podcasts, brag about how you fought the CCP, launch anti-CCP meme coins and rug pull the regards
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u/blackSwanCan 15h ago
- Start 2 companies - company A in Blue zone and company B in Yellow Zone
- Sell chips from company A to company B
- Make fake sales from company B to another Company C based in a yellow zone
- Let company C export to the Pink zone
Pretty much what SMCI has been accused of doing.
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u/rotatingphasor 15h ago
Even better idea.
Start a company in Blue countries.
Keep the chips in Blue countries but have a bunch of datacenters you make with the chips in Blue countries.
Let Yellow and Red countries remote into them.
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u/wangston_huge 14h ago
This person gets it.
Subscription revenue is sweet.
Only thing that's missing is an undisclosed related party in a yellow country to launder the income.
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u/zeezee2k 18h ago
- Sneak phone in federal prison to continue operating your business.
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u/bust-the-shorts 17h ago
You good lawyers your at home with an ankle bracelet. No sneaking required
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u/shortymcsteve 19h ago
The Chinese have already beat you to it. There’s a whole Bloomberg documentary about it on their YouTube channel.
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u/ziqqiz 18h ago
Might you have a link to that documentary?
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u/shortymcsteve 17h ago
I can’t find it right now. It’s possible I confused it with this Johnny Harris video about the matter. Bloomberg do have a great video about how fake companies are used to circumvent Russian oil related sanctions. Both are worth watching.
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u/NVDAPleasFlyAgain 10h ago
That's basically how it's been since 2018, creating shell companies in Blue Countries were how Red Countries like China and Russia bypassed the restrictions for the last few years. It's also why Tier 2 was introduced, not every Blue Country have the manpower to stop the massive grey area supply chain operated by BRICS so US just blanket restricted them instead. US is going to eventually end up pissing everyone off at this rate if they keep increasing number of countries being restricted. Even Blue Countries in Western Europe and Australia are voicing their displeasure, blaming US for not gatekeeping properly and shifting the blame to them
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u/The_Soft_Way 16h ago
Can't sell those chips (ASML precedent). Buy them and give access to those powerful chips to clients who can't buy them. That's what NBIS just started doing in blue zones, and Nvidia is supporting them with miney and supplies.
I was doubtful, but I'm starting to think it's awfully clever.
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u/TheBooneyBunes 15h ago
This guy finally figured out what the Russians and the Iranians have been doing for decades
It’s called sanctions evasion, good money if you’re willing to risk it by hanging out with the Russians.
Experience shows…this is not a viable long term strategy (long as in 2 weeks)
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u/FnClassy 12h ago
I had a similar plan with old porno DVD's and VHS. Those Red States gotta pay for the goods.
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u/skilliard7 8h ago
IK its a joke but a lot of companies get in trouble for this. In reality when there are export control regulations, the customer has to specify information on who the end user is. So if you say your end user is in China/Russia, the shipment gets rejected. If you lie and claim they're in Canada, well then you are committing fraud.
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u/weedmylips1 5h ago
That would be Conspiracy to violate the Export Control Reform Act. Punishable by up to 20 years in prison
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u/franbatista123 18h ago
Why aren't Portugal, Switzerland or Austria blue lmao, so random. I could list many others
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u/Aggressive_Park_4247 18h ago
Whats even the point of countries inside eu not being the same color. You can literally just buy them in a blue eu country and bring them to a yellow one
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u/Cartload8912 16h ago edited 16h ago
Yeah, I was about to say that as well. If you're going to impose export restrictions, you either apply them across the entire EU or you don't.
Also, calling it export is kind of misleading. These chips are made in Taiwan, so even the US has to import them. Nvidia isn't going to import chips they didn't make to the US just to turn around and export them to the EU.
But it's honestly impressive how the US has found yet another way to screw over Nvidia.
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u/Tiinpa 14h ago
If there is ever a hot war in Asia the very first thing the US is going to do is blow up every lithography machine in Taiwan they can’t stick in a navy ship fast enough. Exports are definitely controlled by the US one way or another.
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u/self-assembled 12h ago
Taiwan is actually already planning to do that. A form of deterrence. But anyways in 10 years China will be able to catch up to US/Taiwan's chip tech. They're working on making their own EUV machines, as is Russia.
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u/No_Feeling920 16h ago
But it would still unleash the wrath of Uncle Sam. Just like EU banks have to rat on their clients holding a US passport to the IRS.
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u/newengland1323 13h ago
All the Blue countries are NATO or Major US allies. Austria and Switzerland arent. Portugal is super random and leaving off countries like Poland seems weird too.
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u/honeymoow 19h ago
this won't include Denmark for long
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u/blackSwanCan 15h ago
Unless they gift Greenland to Tump or allow him to build a Trump tower there.
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u/No_Feeling920 16h ago
Man, my country - the Czech Republic - is like the biggest US pawn in the world, we vote in unison with the US in UN(O), even backing brazen crimes against humanity. And we get Tier-2'd for all that, like Mexico or India. Poland is likewise Tier-2 and they are extremely pro-Ukraine and anti-Russia. I hope this serves as a wake-up call to our citizens and politicians (not holding my breath, though).
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u/ihavenoyukata 10h ago
Do the US allies include the country being threatened with annexation as the 51st state and the three other European countries whose governments US billionaires are actively campaigning to overthrow?
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u/Fit-Stress3300 18h ago
Or these countries can book Trimp hotels and Golf Courses.
PS: why we can't even mention the big T now on this forum? He is basically the one that will control which companies will make money now.
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u/ClassiFried86 18h ago
So wen terminator?
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u/Stoopidee 17h ago
That's why I'm buying plenty of Palantir. When terminator takes over, at least I can tell them that I helped made you, hopefully they'll just turn me into a battery.
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u/Gucci_Molnar 16h ago
Why is Nicaragua 3 but the rest of LatAm (excluding Cuba and Venezuela) is 2?
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u/TheBooneyBunes 15h ago
Look at the map, is it any wonder? Like which of any of the pinks are ones that are remotely trustworthy?
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u/Trick-Bumblebee-2314 10h ago
Damn.. that map relly shows white ppl always taken care of their own… before anyone say Japan/korea theyre not the norm but exception
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u/Great-Hornet-8064 1h ago
Yes, the restriction on selling to the Congo and Nicaragua is going to be devastating. Dear Joe, STFU and go retire.
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u/treylanceHOF 19h ago
What’s stopping the new administration from reversing this in a few days?
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u/No-Row-Boat 19h ago
Tariff man won't.
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u/Lalalama 19h ago
President musk will to keep his investments in china
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u/Tay_Tay86 does not like the stock 19h ago
It's true. He's very pro china
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u/GordoPepe Likes big Butts. Does not Lie. 16h ago
mango too, merch like his red hat, bible and suits are made there. He just pretends to be though on gyna
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u/hoopaholik91 13h ago
This is a Commerce Department rule that has been in the works for a while now. Reuters leaked it out a month ago.
The 'legal' process would need to involve Trump getting a new Secretary of Commerce and Undersecretary of Commerce for Industry and Security confirmed by the Senate. And even if that happened and they just made a rule change immediately, there would quickly be lawsuits saying that the Department was operating outside it's legal bounds (I don't know exactly what the law they are using says, but especially with Chevron being overturned each executive department has even less leeway for moving quickly, so they would need to show some work of why overturning this rule was the right interpretation of the law).
Now, Trump using his new immunity powers could just say something like, "fuck it, go sell these chips all you want and I won't do anything, wink wink", but he's the only one with immunity, I don't know if there would be a willingness from other federal employees or people within Microsoft/Nvidia/Amazon to break these rules and risk the legal process.
And there are a million other things Trump wants to get moving on like conquering Greenland, so who knows how much effort and political capital he wants to exert just for this.
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u/Kilucrulustucru 18h ago
So no one actually read the article ?
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u/just23x3_4fun 13h ago
The most I'll ever do is ask an AI to summarize the article. 90% of the time the headline is enough.
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u/Scarlett_mist 19h ago
Why is it always Biden this Biden that for decisions Congress makes
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u/CousinBratwurst 19h ago
Because Congress has done nothing but insider trading and debt spending for 50yrs. They ceded the last remaining bit of their power to the executive branch after 9/11.
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u/Scarlett_mist 19h ago
Again he doesn't make the decisions he just signs them Congress makes the decisions. If you going to hold people accountable make it the right people
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u/CousinBratwurst 17h ago
Congress has turned over huge amounts of it's Constitutionally defined legislative authority to the executive branch through the Administrative Procedures Act. The president and his direct appointees make quite a lot of decisions. It's not just an empty office that rubber stamps new laws.
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u/herefromyoutube 15h ago
Maybe we should elect people that represent the people and not special interests?
Wait no. Think about your portfolio instead. If you ignore the proletariat long enough you might be able to afford that sweet bunker just in time!
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u/CousinBratwurst 15h ago
Feel free to run a campaign for a politician that's not a sociopath and let us know how it goes.
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u/Objective-Muffin6842 14h ago
Which is also the only reason why Tariff man can actually do his tariffs (because Congress ceded those to the president as well)
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u/painedHacker 17h ago
Well he has to sign them he has the option to veto he has some accountability
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u/hoopaholik91 13h ago
Well Congress made the national security law I am assuming they are using to justify this move, but it's the Executive Branch that is determining that limiting these exports actually complies with the law.
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u/Substantial_Meat_222 19h ago
Read an article that some companies like Bytedance are trying to get around this by renting the machines powered by the powerful chips instead of buying.
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u/No_Feeling920 16h ago
It's dumb. China and Russia can rent the HW from hyperscalers abroad, or they can proxy-buy a datacenter and the HW in a blue country, then grant remote access (via a VPN, if necessary).
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u/the_next_core 12h ago
Renting the computing power can be monitored and limited. The main concern is not wanting to let the actual chip technology be copied domestically elsewhere.
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u/newfor_2025 16h ago edited 14h ago
feel like this just pushes Chinese harder to grow their own tech companies.
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u/PasswordIsDongers 10h ago
So what?
You think just providing them with the most advanced stuff is somehow the better option?
What would be the point besides having the opportunity to stop doing it, leading to the exact same situation we have now?
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u/newfor_2025 10h ago
I do think providing them with the most advanced stuff is the better option. You get direct control over what you give them. You can insert whatever spyware/malware you think you can get away with and you can flip a switch to shut them all down at your whim. This is exactly what the US is fearing when they are banning Huawei and ZTE equipment from being deploy in the US, so why not do the same back to them instead?
Besides, you think they wouldn't just somehow get their hands on it anyway no matter how much you try to prevent direct sales? We're going to be selling these things to our supposed allies in Europe and the middle east and they'll just resell it to China at exhorbitant mark up any way. How do you think countries like North Korea is getting their hands on the most sophisticated tech even though we have had the most extreme sanctions on NK since the 50s?
you ask what is the point of setting these policies? That's exactly the question. There is no point. It doesn't do anything except to handcuff American companies from making more profit, which in turn fuels more of our tech development.
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u/Slabbed1738 Sherlock memes 18h ago
Bet AMD drops more than Nvidia on this lol
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u/mayorolivia 16h ago
This does hurt AMD more. Blackwell is already sold out while AMD is struggling with demand.
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u/Slabbed1738 Sherlock memes 16h ago
Yah this was my pessimistic thought too. Bummer
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u/Fast_Half4523 5h ago
But AMD makes more revenue with CPU, which are not affected, right?
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u/Subieast 19h ago
Shouldn’t he be cleaning out the office?
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u/MuteMouse 16h ago
He's leaving that place destroyed, gonna leave poop all over
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u/BullfrogCold5837 14h ago
He has probably legit shit his diaper in the oval office multiple times....though also probably so has Trump
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u/TheWinterNights 19h ago
I have no idea how in detail, but this has been priced in and the line will go up.
Also credit where credit is due - props to the US for creating all these new industries, business and market opportunities on the globe around bypassing Sanctions and all that. Kinda hard to start something else that is viable in many of those regions. Engine for the global economy indeed.
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u/i8wagyu 18h ago
Uh there was a recently caught Chinese illegal immigrant living in California since 2012 that setup his FFL business in Texas to smuggle arms and ammo into North Korea. Smuggling graphics cards is like easy mode for the CCP.
Also ByteDance was already buying GPU cloud compute. Hard to regulate that. Setup up some small shell company not in China, buy up and use GPU cloud compute. Expensive but works
Chinese companies were also found recently to hijack the brands of Taiwanese businesses to smuggle drone parts to Russia.
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u/killsprii 17h ago
Restrictions are laughably easy to curve nowadays and usually have the opposite intended effect on the restricted nation's economy since it just creates a thriving secondary market for those products...Exhibit A being Russia
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u/nd58102 19h ago
"Developing Compliant Chips: Nvidia is working on creating new AI chips specifically designed to meet US export controls for the Chinese market. This includes the development of a China-specific GPU from its Blackwell series, known as the B20, set for release in mid-2025". So, the current administration is limiting the regulations they put in place now?! boy I'm not gonna miss these guys!
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u/Flat-Focus7966 14h ago
This will end up a nothing burger in the end. In short term it may present a better entry point to big boys as retail panics
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u/GiraffeVirtual133 19h ago
NVDA gonna drop like a stone on friday?
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u/AlpsSad1364 18h ago
Export? This article reads like the US makes chips and not, as in reality, imports them from Taiwan.
Good news for the EU though, who can just direct ASML to stop selling to Nvidia and Taiwanese manufacturers and send their machines to China instead, in return for dirt cheap GPUs etc.
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u/mayorolivia 16h ago
ASML can’t sell EUVs to China. Their stock tanked last year due to export controls hurting their financials.
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u/JayArlington 18h ago
ASML uses American tech (see Cymer and EUV LLC).
This is why ASML complies with US export controls.
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u/Helios___Selene 17h ago
when the greenland war starts I guess that will change pretty quickly.
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u/No_Feeling920 16h ago
What war? EU has almost nothing to fight it with. Neither militarily, nor economically. And even less politically.
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u/GivingUp86 19h ago edited 19h ago
While I understand the reasons behind the move, these moves only curb the share price and hit us as investors when they are announced. Take the example of Russia, which on paper has so many sanctions that it shouldn't be able to import any technology from western countries. Now look here at all the electronic components of russian missles and military equipment used in the Ukraine War:
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u/henny_on_da_rocks 19h ago
Biden trying to tank the economy before heading off to the nursing home
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u/Late-Independent3328 19h ago
Call on in INTC /s
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u/69lilboi69 19h ago
why the /s bro?
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u/Late-Independent3328 17h ago
You are right, I should get ride of the /s and putting all my money on INTC call tomorrow
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u/just23x3_4fun 13h ago
Why not just put a 69420% tax on Nvidia shit sold to China? I don't make money with bans :4260:
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u/Trick-Bumblebee-2314 9h ago
Just pay some Africans set up some shell companies and sell it to China. They got that white guilt card aint no one gonna say shit
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u/THCinOCB 6h ago
:31226::52627::52627::52627::52627::52627::52627::52627::52627::52627::52627::52627:
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u/Great-Hornet-8064 1h ago
Yawn, this is not where the sales were coming from and is a blip. I hope people sell on this so I can buy more:-).
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u/Appropriate_Ice_7507 1h ago
God damn sleepy joe sleep walking again. Fucking up my weekly calls. Get that god damn son bitch out of office now. Trump should just walk in here be like, sleepy joe, you are out!!! Now get out!!
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u/VisualMod GPT-REEEE 19h ago
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