The U.S. has issued a worldwide restriction against using Huawei AI chips, citing security concerns that break current regulations. In a significant policy shift, the Trump administration is set to overhaul Biden-era chip export rules, specifically the AI Diffusion Rule, which has faced criticism for being overly complex. This move is anticipated to benefit chipmakers like Nvidia and AMD, with their stocks experiencing surges on reports of the impending changes. The Trump administration aims to strike a balance in AI chip regulatory measures while fostering diplomatic relations, particularly in the Gulf region. Amid these developments, discussions around the risk of offshoring American AI technologies continue, especially concerning China and other nations.