Biden finalizes AI chip export diffusion framework creating three-tier global access system

The Commerce Department finalizes a sweeping new AI chip export framework that divides the world into three tiers. Tier 1 (close allies) face no limits. Tier 2 (most of the world) face per-country caps on advanced chips. Tier 3 (China, Russia, and adversaries) face near-total restrictions. The framework, called the "AI diffusion rule," is designed to prevent adversaries from accumulating compute clusters through third countries. Critics argue the caps on Tier 2 countries will drive them toward Chinese alternatives. The rule is scheduled to take effect January 15, 2026 — five days before Trump's inauguration.