Under the rules, only a core group of 20 trusted countries, including most large European and Asian democracies, are exempt from export caps. However, key US partners including India, Singapore, Vietnam, and Mexico are excluded, along with smaller European nations such as the Baltic republics and Czechia, signaling disparities in US trust. Local cloud providers could qualify as “validated end users” by meeting specific security assurances, as seen in a recent US-UAE deal allowing G42 to access Microsoft’s advanced AI technology after limiting ties to China.
What it means for enterprises
The implications for enterprises are far-reaching. Under the new framework, businesses relying on GPUs for cloud services or AI development may face cost increases, supply chain challenges, and delays in accessing cutting-edge technologies. For cloud providers, compliance costs linked to retrofitting data centers with stringent security requirements could create additional burdens.
“For enterprises, the export control framework may disrupt GPU supply chains, causing project delays and increased operational costs, while forcing enterprises to invest in alternative technologies, potentially impacting their competitiveness and profitability,” Forrester’s Dai said.
