U.S. Executive Order Propels American AI Exports

On July 23, 2025, President Trump signed an Executive Order, "Promoting the Export of the American AI Technology Stack" (AI Export EO), which represents a significant evolution in U.S. policy related to AI. For businesses operating in the AI sector and the wider emerging technology ecosystem, the move creates new export opportunities, but these opportunities come with export compliance considerations.

American AI Exports Program

The AI Export EO requires the establishment of the American AI Exports Program (the "Program"), which will be implemented by the Department of Commerce. The objective of the Program will be to support the development and deployment of "full-stack AI export packages." These so-called "full-stack" exports encompass hardware, software, data infrastructure, AI models, and cybersecurity layers.

The AI Export EO requires coordination of relevant agencies for the "mobilization of Federal financing tools in support of priority AI export packages," which are the export packages selected by Commerce for inclusion in the Program. Per the EO, the Trump administration also seeks to facilitate the investment in U.S. small businesses for the development of AI technologies and the manufacture of AI infrastructure, hardware, and systems.

Proposals for Inclusion in Program

Initially, Commerce will solicit public proposals from "industry-led consortia" to be included in the Program. The deadline for submission will be within 90 days after the call for proposals, and each proposal must include:

1. A "full-stack AI technology package," inclusive of:
   1. AI-optimized computer hardware (e.g., chips, servers, and accelerators), data center storage, cloud services, and networking;
   2. data pipelines and labeling systems;
   3. AI models and systems;
   4. measures to ensure the security and cybersecurity of AI models and systems; and
   5. AI applications for specific use cases (e.g., software engineering, education, healthcare, agriculture, or transportation);
2. A description of whether and to what extent the AI full-stack hardware is manufactured in the United States;
3. Identification of specific target countries or regions for export engagement;
4. A description of a business model explaining the entities that operate data centers and associated infrastructure; and
5. A description of requested Federal incentives and support.

Export Control Compliance Requirements

Importantly, the proposals for inclusion in the Program also require the consortia to "comply with all relevant United States export control regimes, outbound investment regulations, and end-user policies." The AI Export EO also specifically references compliance with the Export Control Reform Act and guidance from the Department of Commerce Bureau of Industry and Security (BIS), which administers and enforces the Export Administration Regulations (EAR).

On May 13 2025, one day after announcing the recission of the Biden administration's sweeping AI export rule, BIS published multiple guidance documents related to advanced computing integrated circuits useful for AI purposes:

• Guidance on Application of General Prohibition 10 to People's Republic of China Advanced-Computing Integrated Circuits: This guidance alerts U.S. industry to risks of using Chinese-origin advanced computing integrated circuits (ICs). General Prohibition 10 provides that one "may not sell, transfer, export, reexport, finance, order, buy, remove, conceal, store, use, loan, dispose of, transport, forward, or otherwise service, in whole or in part, any item subject to the EAR" with knowledge that a violation has occurred. Because many Chinese-origin advanced computing ICs, including specific Huawei Ascend chips, were likely developed or produced in violation of the EAR, the use of such chips is likely in violation of General Prohibition 10.
• Industry Guidance to Prevent Diversion of Advanced Computing Integrated Circuits: With this guidance, BIS seeks to improve industry's awareness of illegal diversion schemes specifically related to advanced computing ICs. Advanced computing ICs are used by China for military modernization and for training AI models. The guidance adds multiple new "transactional and behavioral red flags" to monitor and identifies numerous due diligence actions companies should take related to customers.
• BIS Policy Statement on Controls that May Apply to Advanced Computing Integrated Circuits and Other Commodities Used to Train AI Models: Written as a "policy statement," this document updates previous BIS advisory opinions and describes types of activities that may be subject to EAR export authorizations. Specifically, the policy statement announces that "BIS has determined that access to advanced computing integrated circuits and commodities subject to the EAR for training AI models has the potential to enable military-intelligence and weapons of mass destruction (WMD) end uses in Country Group D:5 countries (including China) or Macau."

Companies and consortia interested in applying for inclusion in the Program must have an export compliance plan in place at both the proposal drafting and execution stages, and the compliance plan will require enhanced end-user screening and due diligence. Legal and compliance teams should proactively review their export control policies focused specifically on AI products, services, and data flows.

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