US Export Controls on GPUs and AI Servers
US export controls on GPUs and AI servers restrict which advanced chips and computing systems American companies can sell to certain countries, most notably China. The rules, administered by the Bureau of Industry and Security (BIS), set performance thresholds that determine whether a product requires a license before it can be shipped abroad.
Background: Why the Rules Exist
The controls stem from national security concerns. GPUs (graphics processing units) originally designed for gaming turned out to be exceptionally good at training large AI models. The US government argues that letting adversaries acquire the most powerful chips would let them build advanced AI for military purposes, such as autonomous weapons or surveillance systems. The first major restrictions appeared in October 2022, with updates in October 2023 and April 2025. Each revision tightened the performance cutoff or closed loopholes found in earlier versions.
How the Controls Work
BIS uses two main metrics to classify chips: total processing performance (TPP) and performance density. TPP roughly equals the chip’s throughput times its bit width; density divides that by the die area. The rules set a TPP ceiling—currently 4,800—and a density ceiling of 5.92. Any chip above those limits is considered “advanced” and cannot be exported to China or other restricted destinations without a license, which is almost never granted. Chips below the thresholds are “mainstream” and can ship freely, though some have a notification requirement.
AI servers are covered too. A server that contains multiple advanced chips is itself controlled, even if each individual chip would be allowed. The rules also restrict the sale of chip-making equipment and software, so foreign companies can’t just build their own advanced GPUs using US technology.
What’s Actually Restricted
The most visible effect is on high-end AI accelerators. For example, NVIDIA’s A100 and H100 were restricted in 2022; the later H200 and the upcoming Blackwell series (B200) are also covered. AMD’s MI300 series likewise falls under the limits. In response, companies have created “cut-down” versions for the Chinese market, such as the A800 and H800, which have lower interconnect speeds to stay under the threshold. But the October 2023 rules closed that loophole by also restricting chips with reduced interconnect bandwidth if they meet certain density criteria.
Beyond chips, the rules cover:
- Advanced memory chips (HBM) used in AI accelerators
- Software that enables chip design or manufacturing
- Certain semiconductor manufacturing equipment
- Servers and systems containing multiple controlled chips
How Companies Comply
Exporters must classify their products using the Commerce Control List (CCL) and determine the end user and end use. For most sales to China, they need a license from BIS. To get one, they must demonstrate that the product won’t be used for military or AI applications. In practice, licenses for advanced chips are denied, so companies either design lower-performance variants or stop selling to China altogether. Many now include clauses in contracts requiring buyers to verify they won’t re-export the chips to restricted parties.
Compliance also involves screening customers against the Entity List—a blacklist of companies that require special approval. For example, Huawei and several Chinese chipmakers are on it. Selling to them without a license can result in fines, loss of export privileges, or criminal charges.
Common Problems and Misconceptions
A frequent misunderstanding is that the controls apply only to China. In fact, they cover a broader set of countries, including Russia, Iran, North Korea, and Syria. However, the most restrictive rules target China because of its AI ambitions. Another misconception is that the rules ban all GPU exports. They don’t—they only restrict chips above the performance threshold. Many mid-range GPUs, like the RTX 4070, are still exportable to China.
Another issue is the “gray market.” Some companies try to route chips through third countries like Singapore or the UAE to bypass the rules. BIS has responded by adding new license requirements for certain destinations and by requiring exporters to verify the end user more carefully. In 2025, the rules were updated to require licenses for nearly all advanced chips to any country that could re-export them to China.
Costs and Consequences
The controls have significant economic effects. US chipmakers lose a large market—China accounted for about a quarter of NVIDIA’s revenue before the bans. To compensate, they’ve raised prices in other markets and accelerated development of new products. For buyers outside China, the restrictions can actually increase supply and lower prices for high-end chips, since more units are available for the rest of the world. However, the compliance burden—hiring export control specialists, obtaining licenses, and auditing customers—adds costs that are passed on to buyers.
For Chinese companies, the impact is severe. They can’t easily buy the best AI chips, so they’ve turned to domestic alternatives like Huawei’s Ascend series, which are less powerful but still capable. The US rules also push China to invest more in its own chip manufacturing, which could eventually reduce its dependence on foreign technology.
Alternatives and Future Outlook
For companies outside the US that need advanced AI chips, there are few alternatives. The main options are:
- Buy from US suppliers if they can obtain an export license (unlikely for China)
- Use Chinese chips like Huawei Ascend or Cambricon
- Rent cloud compute from providers that have data centers in non-restricted countries (e.g., Oracle, Microsoft, or AWS regions outside China)
- Use lower-performance chips and optimize software to compensate
The rules are likely to tighten further as AI capabilities grow. BIS has said it will update the thresholds regularly to keep pace with new chip designs. Some experts predict that future controls will also target cloud services that let Chinese companies access US-made AI chips remotely. That would close the last major loophole.
Frequently Asked Questions
Can I buy an NVIDIA H100 for personal use in China?
No. The H100 is above the performance threshold and cannot be exported to China without a license, which is effectively impossible to get. Even if you find one on the gray market, importing it would violate US export law and could lead to penalties.
Are gaming GPUs like the RTX 4090 restricted?
The RTX 4090 was initially restricted in October 2023 because its TPP exceeded the new limit. However, BIS later allowed a modified version for China that has lower performance. As of 2025, the standard RTX 4090 is not exportable to China, but a cut-down “RTX 4090D” is.
Do the controls apply to software or just hardware?
They apply to both. The rules restrict the export of software that can be used to design or manufacture advanced chips, as well as certain AI software that runs on those chips. However, widely available open-source AI frameworks like TensorFlow are not controlled.
Can a company in the US sell AI servers to a subsidiary in China?
No, not without a license. The rules apply to any transfer, including to your own subsidiaries or joint ventures. If the server contains advanced chips, you need BIS approval, which is rarely granted for China.
What happens if a company violates the export controls?
Violations can lead to civil fines (often in the millions of dollars), denial of export privileges, and criminal prosecution. In severe cases, executives can face prison time. BIS also adds violators to the Entity List, which bars them from receiving US technology.
Are there any exceptions for research or academic purposes?
Yes, for some lower-tier chips. BIS allows exports for certain research and academic uses if the end user is not on a restricted list and the chip is below the highest performance tier. But for the most advanced chips, there are no exceptions—even universities in China cannot get them.
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