In a dramatic shift that could redefine global access to artificial intelligence (AI) hardware, the United States has formally scrapped an export control measure known as the &ldquo;AI diffusion rule&rdquo;.
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The decision made by the Trump administration paves the way for allied nations such as India and Saudi Arabia to access cutting-edge American AI chips without facing the quotas and restrictions proposed under the previous administration.
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The move is seen as a strategic recalibration in Washington&rsquo;s approach to AI governance&mdash;one that seeks to bolster partnerships, protect US innovation, and isolate adversaries like China without alienating friendly nations.
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<h2>Policy reversal</h2>
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In the AI diffusion rule, issued on January 15, 2025, with compliance requirements that were set to come into effect on May 15, 2022, the Biden administration had proposed a tiered framework for the export of advanced computing semiconductors.
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Designed to curb the indirect flow of chips to China through third-party countries, the rule categorised global nations into three tiers. While tier-one allies like Japan and South Korea faced minimal constraints, tier-two countries such as India, Mexico, and Portugal were subject to chip quotas. Nations deemed adversarial faced outright bans.
&nbsp;
Though the policy never officially took effect, it had already sparked concern among governments and tech firms globally. Critics warned that the sweeping nature of the rule risked damaging diplomatic relationships, stifling AI development in friendly nations, and pushing them toward rival suppliers, including Chinese chipmakers.
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According to a Reuters report, David Sacks, the newly appointed White House AI and crypto head, confirmed the reversal while addressing the Saudi-US Investment Forum in Riyadh. &ldquo;The Trump administration has just announced that we will be rescinding what&rsquo;s known as the Biden diffusion rule,&rdquo; Sacks said. &ldquo;It literally restricted the diffusion or proliferation of American technology all over the world.&rdquo;
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Sacks emphasised that the intention was never to alienate allies like Saudi Arabia or India and that the policy had been widely misunderstood. &ldquo;Diffusion is not a risk with a friend like Saudi Arabia,&rdquo; he added, noting that the administration would now pursue a more inclusive, trust-based export framework.
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<h2>Strengthening alliances</h2>
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Commerce Under Secretary Jeffrey Kessler echoed Sacks&rsquo; sentiments, characterising the previous rule as "ill-conceived and counterproductive". He outlined the new administration's philosophy: to foster innovation and deepen technology partnerships with like-minded nations.
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&ldquo;We reject the Biden Administration's attempt to impose its own ill-conceived and counterproductive AI policies on the American people,&rdquo; Kessler said. &ldquo;The Trump Administration will pursue a bold, inclusive strategy to share American AI technology with trusted foreign countries around the world while keeping the technology out of the hands of our adversaries.&rdquo;
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The revised approach has already started reshaping the global AI supply chain. In a major development, Nvidia recently signed a deal with Saudi Arabia&rsquo;s AI startup Humain, backed by the country&rsquo;s sovereign wealth fund. As part of the agreement, 18,000 of Nvidia&rsquo;s latest Blackwell GB300 chips will be delivered to Saudi Arabia to power a planned 500-megawatt data centre&mdash;a significant boost to the country's ambitions to become a global AI hub.
&nbsp;
India, another country expected to benefit significantly from the rollback, has been aggressively ramping up its AI infrastructure. While no formal deal has yet been announced, analysts believe the softened stance will unlock new opportunities for technology transfer and chip access, particularly for Indian startups and public initiatives seeking to leapfrog in the AI race.
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<h2>Balancing security and growth</h2>
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The Biden-era rule was part of a broader four-year effort to limit China&rsquo;s access to dual-use technologies that could enhance its military capabilities. It aimed to prevent backdoor channels by which American chips could end up in adversarial hands through transshipment or third-party nations.
&nbsp;
While that core objective remains unchanged under the Trump administration, officials say the new framework will rely more on targeted enforcement and less on blanket rules. The Commerce Department reiterated that export restrictions remain in place for China and other countries of concern. It specifically warned against the use of US-origin chips for training Chinese AI models or integrating them with Huawei&rsquo;s advanced Ascend processors.
&nbsp;
This approach seeks to balance the dual imperatives of national security and technological leadership. By allowing trusted nations greater access to US semiconductors, Washington hopes to maintain its dominance in AI development while reducing the incentive for global players to turn to Chinese alternatives.
&nbsp;
As the AI arms race heats up, the Trump administration's decision to scrap the diffusion rule may offer a crucial edge&mdash;enabling US chipmakers to build deeper ties with foreign partners and secure strategic footholds in fast-growing regions.

Business & Economy: The decision paves way for allied nations like India and Saudi Arabia to access cutting-edge American AI chips without facing quotas and restrictions

In a dramatic shift that could redefine global access to artificial intelligence (AI) hardware, the United States has formally scrapped an export control measure known as the “AI diffusion rule”. The decision made by the Trump administration paves the way for allied nations such as India and Saudi Arabia to access cutting-edge American AI chips without facing the quotas and restrictions proposed under the previous administration. The move is seen as a strategic recalibration in Washington’s approach to AI governance—one that seeks to bolster partnerships, protect US innovation, and isolate adversaries like China without alienating friendly nations. Policy reversal In the AI diffusion rule, issued on January 15, 2025, with compliance requirements that were set to come into effect on May 15, 2022, the Biden administration had proposed a tiered framework for the export of advanced computing semiconductors. Designed to curb the indirect flow of chips to China through third-party countries, the rule categorised global nations into three tiers. While tier-one allies like Japan and South Korea faced minimal constraints, tier-two countries such as India, Mexico, and Portugal were subject to chip quotas. Nations deemed adversarial faced outright bans. Though the policy never officially took effect, it had already sparked concern among governments and tech firms globally. Critics warned that the sweeping nature of the rule risked damaging diplomatic relationships, stifling AI development in friendly nations, and pushing them toward rival suppliers, including Chinese chipmakers. According to a Reuters report, David Sacks, the newly appointed White House AI and crypto head, confirmed the reversal while addressing the Saudi-US Investment Forum in Riyadh. “The Trump administration has just announced that we will be rescinding what’s known as the Biden diffusion rule,” Sacks said. “It literally restricted the diffusion or proliferation of American technology all over the world.” Sacks emphasised that the intention was never to alienate allies like Saudi Arabia or India and that the policy had been widely misunderstood. “Diffusion is not a risk with a friend like Saudi Arabia,” he added, noting that the administration would now pursue a more inclusive, trust-based export framework. Strengthening alliances Commerce Under Secretary Jeffrey Kessler echoed Sacks’ sentiments, characterising the previous rule as "ill-conceived and counterproductive". He outlined the new administration's philosophy: to foster innovation and deepen technology partnerships with like-minded nations. “We reject the Biden Administration's attempt to impose its own ill-conceived and counterproductive AI policies on the American people,” Kessler said. “The Trump Administration will pursue a bold, inclusive strategy to share American AI technology with trusted foreign countries around the world while keeping the technology out of the hands of our adversaries.” The revised approach has already started reshaping the global AI supply chain. In a major development, Nvidia recently signed a deal with Saudi Arabia’s AI startup Humain, backed by the country’s sovereign wealth fund. As part of the agreement, 18,000 of Nvidia’s latest Blackwell GB300 chips will be delivered to Saudi Arabia to power a planned 500-megawatt data centre—a significant boost to the country's ambitions to become a global AI hub. India, another country expected to benefit significantly from the rollback, has been aggressively ramping up its AI infrastructure. While no formal deal has yet been announced, analysts believe the softened stance will unlock new opportunities for technology transfer and chip access, particularly for Indian startups and public initiatives seeking to leapfrog in the AI race. Balancing security and growth The Biden-era rule was part of a broader four-year effort to limit China’s access to dual-use technologies that could enhance its military capabilities. It aimed to prevent backdoor channels by which American chips could end up in adversarial hands through transshipment or third-party nations. While that core objective remains unchanged under the Trump administration, officials say the new framework will rely more on targeted enforcement and less on blanket rules. The Commerce Department reiterated that export restrictions remain in place for China and other countries of concern. It specifically warned against the use of US-origin chips for training Chinese AI models or integrating them with Huawei’s advanced Ascend processors. This approach seeks to balance the dual imperatives of national security and technological leadership. By allowing trusted nations greater access to US semiconductors, Washington hopes to maintain its dominance in AI development while reducing the incentive for global players to turn to Chinese alternatives. As the AI arms race heats up, the Trump administration's decision to scrap the diffusion rule may offer a crucial edge—enabling US chipmakers to build deeper ties with foreign partners and secure strategic footholds in fast-growing regions.

US rescinds Biden-era AI chip export curbs, opening doors for allies

In a significant turn of events, artificial intelligence (AI) major OpenAI announced on May 05 that the company will maintain its nonprofit control of its business operations despite plans to create a public benefit corporation (PBC). This decision likely constrains CEO Sam Altman's authority over the ChatGPT maker.
In a letter to the employees, Altman said, &ldquo;We made the decision for the nonprofit to retain control of OpenAI after hearing from civic leaders and engaging in constructive dialogue with the offices of the Attorney General of Delaware and the Attorney General of California.&rdquo;
&ldquo;Our mission is to ensure that artificial general intelligence (AGI) benefits all of humanity,&rdquo; the letter said. &ldquo;We are committed to this path of democratic AI. We want to put incredible tools in the hands of everyone,&rdquo; it added.
OpenAI had earlier proposed restructuring its operations to increase its for-profit status, a move that had raised concerns about the company&rsquo;s commitment to its original mission of developing artificial general intelligence for the benefit of humanity. However, following mounting pressure and legal challenges, including a lawsuit filed by Elon Musk, OpenAI has altered its approach, with the nonprofit parent organisation now set to remain in charge.
<h2 dir="ltr">The new structure</h2>
CNBC reported that in a video call with reporters, OpenAI&rsquo;s board chairman Bret Taylor said, &ldquo;With the structure we&rsquo;re contemplating, the not-for-profit will remain in control of OpenAI&rdquo;.&nbsp;
&ldquo;We will be converting the limited liability company that is a subsidiary of that nonprofit to a public benefit corporation. By doing so, it will change the equity structure of that company so that employees, investors and the not-for-profit can own equity in that PBC,&rdquo; he added.
Taylor said OpenAI had commissioned outside financial advisors to consult on the recapitalisation. He declined to share how much of a stake the nonprofit would have in the company, though it will be a majority.
Under the new structure, OpenAI&rsquo;s nonprofit board will maintain governance over the company, with the same directors likely serving on both the nonprofit and the PBC boards. Taylor reassured reporters that the company's mission will remain its top priority, and the nonprofit board's fiduciary duty will be strictly bound to that mission.
<h2 dir="ltr">Backlash on the for-profit plan</h2>
OpenAI began as a nonprofit, but Altman has been proposing changes to the firm&rsquo;s structure since his brief yet controversial ouster from the AI research lab in November 2023. Tesla CEO Elon Musk, who was also a co-founder of OpenAI, has also criticised the company and filed a lawsuit blocking the plan, accusing Altman of prioritising growth over the lab&rsquo;s original mission of creating technology for the benefit of humanity.
In December, Altman announced plans to revamp OpenAI&rsquo;s structure to become a public benefit company. The move raised concerns about whether OpenAI would allocate enough funds to its nonprofit arm and whether it would lead to greater corporate influence.
The plan drew sharp criticism from former OpenAI employees and AI experts. Some expressed concerns that transitioning to a for-profit structure would undermine OpenAI&rsquo;s core mission and reduce accountability, particularly as the company works toward creating AGI. A letter sent to attorneys general in California and Delaware last month warned that removing nonprofit oversight could "subvert OpenAI&rsquo;s charitable purpose" and create significant governance risks.
OpenAI&rsquo;s hybrid structure has included a capped-profit limited partnership that was created in 2019. The original nonprofit is the controlling shareholder and would have been spun out as an independent entity if OpenAI had succeeded in its efforts. With that change no longer taking place, OpenAI&rsquo;s investors receive convertible notes that will turn into equity.
<h2 dir="ltr">Growth path</h2>
As OpenAI charts its new path, it continues to draw attention in the world of AI technology. OpenAI has agreed to acquire AI-based coding tool Windsurf, an AI coding assistant for developers and enterprises, for around $3 billion, according to a Bloomberg report. The acquisition of Windsurf is currently not closed, and if completed would be the largest ever by the ChatGPT maker.
The acquisition would bolster its position in the competitive AI landscape, positioning OpenAI against rivals such as Anthropic and Microsoft&rsquo;s GitHub.
Despite facing ongoing legal disputes with Elon Musk, OpenAI&rsquo;s market value remains robust, estimated at $300 billion, with 400 million weekly users of its flagship product, ChatGPT. These recent developments reflect the company's ongoing efforts to balance rapid growth with its core mission, even as it navigates an increasingly complex regulatory landscape.
(With inputs from agencies)

Business& Economy:  OpenAI’s nonprofit board will maintain governance over the company, with the same directors likely serving on both the nonprofit and the PBC boards

In a significant turn of events, artificial intelligence (AI) major OpenAI announced on May 05 that the company will maintain its nonprofit control of its business operations despite plans to create a public benefit corporation (PBC). This decision likely constrains CEO Sam Altman's authority over the ChatGPT maker. In a letter to the employees, Altman said, “We made the decision for the nonprofit to retain control of OpenAI after hearing from civic leaders and engaging in constructive dialogue with the offices of the Attorney General of Delaware and the Attorney General of California.” “Our mission is to ensure that artificial general intelligence (AGI) benefits all of humanity,” the letter said. “We are committed to this path of democratic AI. We want to put incredible tools in the hands of everyone,” it added. OpenAI had earlier proposed restructuring its operations to increase its for-profit status, a move that had raised concerns about the company’s commitment to its original mission of developing artificial general intelligence for the benefit of humanity. However, following mounting pressure and legal challenges, including a lawsuit filed by Elon Musk, OpenAI has altered its approach, with the nonprofit parent organisation now set to remain in charge. The new structure CNBC reported that in a video call with reporters, OpenAI’s board chairman Bret Taylor said, “With the structure we’re contemplating, the not-for-profit will remain in control of OpenAI”. “We will be converting the limited liability company that is a subsidiary of that nonprofit to a public benefit corporation. By doing so, it will change the equity structure of that company so that employees, investors and the not-for-profit can own equity in that PBC,” he added. Taylor said OpenAI had commissioned outside financial advisors to consult on the recapitalisation. He declined to share how much of a stake the nonprofit would have in the company, though it will be a majority. Under the new structure, OpenAI’s nonprofit board will maintain governance over the company, with the same directors likely serving on both the nonprofit and the PBC boards. Taylor reassured reporters that the company's mission will remain its top priority, and the nonprofit board's fiduciary duty will be strictly bound to that mission. Backlash on the for-profit plan OpenAI began as a nonprofit, but Altman has been proposing changes to the firm’s structure since his brief yet controversial ouster from the AI research lab in November 2023. Tesla CEO Elon Musk, who was also a co-founder of OpenAI, has also criticised the company and filed a lawsuit blocking the plan, accusing Altman of prioritising growth over the lab’s original mission of creating technology for the benefit of humanity. In December, Altman announced plans to revamp OpenAI’s structure to become a public benefit company. The move raised concerns about whether OpenAI would allocate enough funds to its nonprofit arm and whether it would lead to greater corporate influence. The plan drew sharp criticism from former OpenAI employees and AI experts. Some expressed concerns that transitioning to a for-profit structure would undermine OpenAI’s core mission and reduce accountability, particularly as the company works toward creating AGI. A letter sent to attorneys general in California and Delaware last month warned that removing nonprofit oversight could "subvert OpenAI’s charitable purpose" and create significant governance risks. OpenAI’s hybrid structure has included a capped-profit limited partnership that was created in 2019. The original nonprofit is the controlling shareholder and would have been spun out as an independent entity if OpenAI had succeeded in its efforts. With that change no longer taking place, OpenAI’s investors receive convertible notes that will turn into equity. Growth path As OpenAI charts its new path, it continues to draw attention in the world of AI technology. OpenAI has agreed to acquire AI-based coding tool Windsurf, an AI coding assistant for developers and enterprises, for around $3 billion, according to a Bloomberg report. The acquisition of Windsurf is currently not closed, and if completed would be the largest ever by the ChatGPT maker. The acquisition would bolster its position in the competitive AI landscape, positioning OpenAI against rivals such as Anthropic and Microsoft’s GitHub. Despite facing ongoing legal disputes with Elon Musk, OpenAI’s market value remains robust, estimated at $300 billion, with 400 million weekly users of its flagship product, ChatGPT. These recent developments reflect the company's ongoing efforts to balance rapid growth with its core mission, even as it navigates an increasingly complex regulatory landscape. (With inputs from agencies)

OpenAI reverses restructuring plan; nonprofit arm to retain control

Shaadi.com founder Anupam Mittal has responded to comments made by OpenAI CEO Sam Altman in 2023, in which Altman dismissed the potential of AI startups outside of Silicon Valley. Mittal&rsquo;s remarks come in light of DeepSeek, a Chinese-developed AI model, matching the performance of OpenAI&rsquo;s top models and surpassing ChatGPT on the iOS App Store.
In a post on X, Mittal referenced Altman&rsquo;s 2023 statement, which claimed it was "totally hopeless" for India to compete with OpenAI in developing AI models.&nbsp;
He quoted Altman&rsquo;s words, adding, "While India hasn&rsquo;t done it yet, I&rsquo;m glad somebody made him less smug. Apna time bhi aayega," indicating his belief that other challengers could rise despite Altman&rsquo;s dismissive attitude.
<blockquote class="twitter-tweet publive-iframes-block publive-Twitter-block" contenteditable="false" width="600" height="400" id="PL_blockquote_block-m6kdh5ol-fbe621q5-rcec42d0">
&lsquo;It is completely hopeless to compete with us&rsquo; <a href="https://twitter.com/sama?ref_src=twsrc%5Etfw">@sama</a> words to India in 2023. While 🇮🇳 hasn&rsquo;t done it yet, am glad somebody made him less smug. Apna time bhi aayega 💪🏼
&mdash; Anupam Mittal (@AnupamMittal) <a href="https://twitter.com/AnupamMittal/status/1884958613275328660?ref_src=twsrc%5Etfw">January 30, 2025</a></blockquote>
Mittal&rsquo;s comments came after DeepSeek&rsquo;s R1 model, developed at a fraction of OpenAI&rsquo;s investment, has shown remarkable results. The Chinese AI model, which cost just $6 million to develop, has been able to match OpenAI&rsquo;s O1 model, a feat that comes despite OpenAI and Microsoft&rsquo;s extensive investments in the field.
Also read: <a href="https://www.wionews.com/trending/im-pretty-terrified-ex-openai-researcher-quits-issues-dire-warning-8676542">'I'm pretty terrified': Ex-OpenAI researcher quits, issues dire warning</a>
The debate surrounding Altman&rsquo;s remarks was reignited when a video resurfaced of the OpenAI CEO speaking at an ET Now summit in 2023.&nbsp;
At the event, when asked if an Indian team with a $10 million budget could build a competitive AI model, Altman said, "We&rsquo;re gonna tell you it&rsquo;s totally hopeless to compete with us on training foundation models." His comments were widely criticised at the time.
In the same vein, Zerodha CEO Nithin Kamath also weighed in, suggesting that India&rsquo;s short-term mindset and &ldquo;Jugaad mentality&rdquo; were hindering the country&rsquo;s AI ambitions.&nbsp;
Also read: <a href="https://www.wionews.com/india-news/jugaad-mentality-failing-us-zerodhas-nithin-kamath-explains-why-china-has-an-ai-edge-over-india-8673371">'Jugaad mentality failing us': Zerodha's Nithin Kamath explains why China has an AI edge over India</a>
Kamath pointed to China&rsquo;s rapid growth in scientific and technological advancements, including DeepSeek&rsquo;s success, to highlight the need for long-term, focused thinking in addressing India&rsquo;s challenges.

At the event, when asked if an Indian team with a $10 million budget could build a competitive AI model, Altman said, "We’re gonna tell you it’s totally hopeless to compete with us on training foundation models."

Shaadi.com founder Anupam Mittal has responded to comments made by OpenAI CEO Sam Altman in 2023, in which Altman dismissed the potential of AI startups outside of Silicon Valley. Mittal’s remarks come in light of DeepSeek, a Chinese-developed AI model, matching the performance of OpenAI’s top models and surpassing ChatGPT on the iOS App Store. In a post on X, Mittal referenced Altman’s 2023 statement, which claimed it was "totally hopeless" for India to compete with OpenAI in developing AI models. He quoted Altman’s words, adding, "While India hasn’t done it yet, I’m glad somebody made him less smug. Apna time bhi aayega," indicating his belief that other challengers could rise despite Altman’s dismissive attitude. ‘It is completely hopeless to compete with us’ @sama words to India in 2023. While 🇮🇳 hasn’t done it yet, am glad somebody made him less smug. Apna time bhi aayega 💪🏼 — Anupam Mittal (@AnupamMittal) January 30, 2025 Mittal’s comments came after DeepSeek’s R1 model, developed at a fraction of OpenAI’s investment, has shown remarkable results. The Chinese AI model, which cost just $6 million to develop, has been able to match OpenAI’s O1 model, a feat that comes despite OpenAI and Microsoft’s extensive investments in the field. Also read: 'I'm pretty terrified': Ex-OpenAI researcher quits, issues dire warning The debate surrounding Altman’s remarks was reignited when a video resurfaced of the OpenAI CEO speaking at an ET Now summit in 2023. At the event, when asked if an Indian team with a $10 million budget could build a competitive AI model, Altman said, "We’re gonna tell you it’s totally hopeless to compete with us on training foundation models." His comments were widely criticised at the time. In the same vein, Zerodha CEO Nithin Kamath also weighed in, suggesting that India’s short-term mindset and “Jugaad mentality” were hindering the country’s AI ambitions. Also read: 'Jugaad mentality failing us': Zerodha's Nithin Kamath explains why China has an AI edge over India Kamath pointed to China’s rapid growth in scientific and technological advancements, including DeepSeek’s success, to highlight the need for long-term, focused thinking in addressing India’s challenges.

'Apna time ayega': Ex-Shark Tank judge Anupam Mittal fires back at Sam Altman following DeepSeek's AI success

The music legend A.R. Rahman has used artificial intelligence to bring back the voices of late singers Bamba Bakya and Shahul Hameed. He shared this piece of information on social media along with a poster.

AR Rahman composes music using late singers' voices through AI technology