The White House on Monday declared new limitations on the export of artificial intelligence chips. This move is set to impact major tech companies, including Nvidia (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD).

What Happened: Following the announcement, Nvidia’s shares experienced a 3% drop, while AMD’s stock saw a 2% dip in premarket trade, according to data from Benzinga Pro.

The interim final rule on artificial intelligence technology will impose restrictions on chip orders for most nations, according to the White House. However, 18 key allies and trusted partners will be exempted from these limitations. Countries that meet stringent security and trust criteria may apply for elevated privileges, while others will be capped at acquiring up to 50,000 advanced GPUs per country, as outlined in a White House fact sheet.

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Oracle’s Executive Vice President, Ken Glueck, cautioned that the regulations could shrink the international chip market for U.S. companies by as much as 80%. He also noted that the rules, set to take effect 60 days after their publication, could have a profound impact on the U.S. cloud industry.

In December, the U.S. blacklisted 140 Chinese entities and restricted exports of memory chips vital to artificial intelligence. Beijing had also retaliated with export bans and reviews for U.S.-bound shipments of these minerals.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.