Thanks to a major policy change in the United States, Indian startups and researchers may soon find it easier to access cutting-edge AI hardware. The US government has officially scrapped the controversial AI diffusion rule introduced under the Biden administration. The rule was intended to limit China’s access to advanced AI chips, but the restrictions impacted friendly nations like India, Mexico, and Portugal.
The recent reversal announced by White House AI policy lead David Sacks during the Saudi-US Investment Forum aims to mend strained relationships with global allies. “Diffusion is not a risk with a friend like Saudi Arabia”, Sacks stated, signaling a more inclusive approach to international tech cooperation. The Trump administration views this as an act of strengthening global alliances.
Major chipmakers like Nvidia and AMD have been open in their opposition to the earlier rule, warning that it could push allies to turn to other countries for technology. While India has not announced any chip-specific deals yet, it now has a clearer path to acquire powerful chips like Nvidia’s latest Blackwell GB300, which are crucial for training and running advanced AI models.
AI has become a critical part of national infrastructure, following in the footsteps of transformative technologies like electricity and the internet. This lowering of barriers could significantly accelerate India’s AI development across industries.
