On 15 January 2025 the US Bureau of Industry and Security published the Framework for Artificial Intelligence Diffusion (90 FR 4544), amending the Export Administration Regulations on advanced computing integrated circuits and adding controls on certain advanced closed-weight AI model weights. Compliance requirements were originally planned to take effect on 15 May 2025.

From hardware to models

Previously, US export controls related to AI focused mainly on advanced computing chips and manufacturing equipment. One change in this rule is to bring “advanced closed-weight AI model weights” within the controlled objects. Model weights are the core carrier of AI capability, so including them extends the export control boundary from physical hardware to knowledge and parameters.

For companies, the practical effect is that cross-border provision of model capability — whether through weight delivery, API services or collaborative training — may trigger a compliance assessment. See our notes on the US AI Action Plan and on EO 14365 and the national AI policy framework.

A tiered approach

The rule adopts a tiered approach, setting different requirements for different countries and different sizes of transaction. This design moves export control from a blanket approach to risk-based tiering, which in theory reduces the burden on low-risk transactions but markedly raises the complexity of compliance judgement.

For companies involved in cross-border flows of compute, models and data, this calls for a process that can identify transaction type, participants and end use. See our notes on the US FIGHT China Act and on the US CREATE AI Act.

Knock-on effects for overseas companies

Export controls rarely stop at US companies. They travel through supply chains, cloud services and investment terms, so non-US companies also need to assess whether their business falls within scope.

In practice, AI companies should build export control assessment into routine product and transaction processes rather than handling it when a deal is imminent. Model weights, compute and data each need to be mapped separately.

This article is based on US Federal Register 90 FR 4544 (RIN 0694-AJ90) and public information and is for reference only; it does not constitute legal advice.