Core Viewpoint - The U.S. Department of Commerce has officially revoked the Biden administration's "AI diffusion" rules and issued a new industry guidance document that imposes stricter export controls on AI chips, particularly targeting Chinese-made advanced computing integrated circuits (ICs) [1][3]. Group 1: Regulatory Changes - The new guidance document explicitly identifies "advanced PRC ICs" as a key term, indicating a shift from complex regulations to direct targeting of Chinese AI chip production [1][3]. - The Bureau of Industry and Security (BIS) has revised its guidance to alert industries about the risks of using advanced computing ICs from China, including specific mention of Huawei Ascend chips [1][3]. - The new guidelines include 11 "transaction behavior warnings" and 7 "due diligence obligations" for chip design companies, manufacturers, and cloud service providers to identify potential indirect transfers of advanced chips to China or other sensitive countries [3][4]. Group 2: Strategic Implications - The U.S. strategy has shifted from "chip generation control" to "country-specific control," focusing on direct competition with China in AI capabilities [3][4]. - The guidance aims to prevent countries from using Chinese high-performance AI chips, with a clear message that non-compliance will lead to significant repercussions [4][5]. - The U.S. is actively promoting its own AI chips to global markets, particularly in the Middle East, to counteract Chinese influence and fill the potential supply gap created by these restrictions [6][10]. Group 3: Market Dynamics - The U.S. is leveraging partnerships with Middle Eastern countries, such as Saudi Arabia, to establish AI infrastructure and secure long-term contracts for advanced GPUs from companies like NVIDIA [8][10]. - The collaboration with Middle Eastern sovereign wealth funds indicates a strategic move to dominate the AI market in that region while excluding Chinese competitors [10][12]. - The emergence of Chinese cloud service providers, such as Alibaba Cloud, poses a challenge to U.S. efforts, as they are gaining traction in international markets with localized AI solutions [12][13].