Nvidia shares fell 2% Thursday after Bloomberg reported the Trump administration is drafting regulations requiring licenses for AI chip exports worldwide. The proposed rules would expand current restrictions covering around 40 countries to a global framework, requiring companies to seek US government approval for virtually all exports of AI accelerators from Nvidia and AMD.

Under the draft regulations, shipments of up to 1,000 of Nvidia's latest GB300 graphics processing units would undergo review with certain exemption opportunities. Larger deployments exceeding 200,000 GB300 GPUs in one country would require host government participation in the approval process. The US would only approve exports to allies making security commitments and matching investments in American AI technology.

The regulations would establish the US Commerce Department as gatekeeper for the AI industry, giving Washington control over whether countries can build facilities for training artificial-intelligence models. Companies including OpenAI and Alphabet use these chips to power services like ChatGPT and Gemini. While not intended as an export ban, the framework represents a significant expansion of US oversight over the global AI chip market.