US Treasury proposes expanded outbound investment controls for AI

The U.S. Department of the Treasury proposed updates to its Outbound Investment Security Program, it said in a press release. The rules would prohibit some transactions and require notification for others involving covered foreign entities working on sensitive technologies.

The proposal implements the Comprehensive Outbound Investment Security Act. It covers artificial intelligence systems, semiconductors and microelectronics, quantum information technologies, high performance computing, supercomputing, hypersonic systems, and biotechnology.

The rules would apply to U.S. persons and their controlled foreign entities. They also define notification requirements, due diligence expectations, confidential submissions, violations, and penalties. Treasury is seeking public comments before issuing final regulations and setting an effective date.