NEWS / OCT.2026
U.S. Treasury proposes tightening rules on investment in AI abroad
The U.S. Treasury proposes expanding restrictions on U.S. investments in foreign technologies, including artificial intelligence. Some transactions currently subject to notification would become prohibited, and several countries would be added to the current scope.
The U.S. Treasury proposes tightening rules on technology investments abroad
The U.S. Department of the Treasury proposed on 22 October 2026 to expand restrictions on technology investments abroad. The proposal targets, among other things, investments by U.S. persons in foreign companies developing artificial intelligence systems, including for civilian use.
The text seeks to implement the COINS Act on outbound investment security, which dates from 18 December 2025. Since 2 January 2025, a U.S. program has already prohibited certain transactions and subjected others to notification. It covers entities linked to China, Hong Kong or Macao in semiconductors, quantum technology and AI. These rules continue to apply while the proposal is under review.
The new text would also cover Cuba, Iran, North Korea and Russia. Entities located elsewhere may also be covered under certain conditions.
Venezuela appears in the law and the proposal under a definition linked to the Nicolás Maduro regime. The Treasury considers that the country does not currently meet this definition, although some Venezuelan entities may be covered for other reasons.
Civilian systems also affected
For AI, the proposed restrictions would affect covered foreign companies developing systems, including civilian ones. Some transactions currently subject to notification would become prohibited. How a transaction is treated would depend on the conditions and exceptions set out in the proposal.
The text uses the English expression “super intelligence systems” and its abbreviation “SI”. This terminology does not demonstrate that the systems concerned are superintelligences.
Development can include extending a model provided by a third party. However, the proposal specifies that strictly internal, noncommercial use of a ready-to-use third-party system is not sufficient on its own to constitute development, even if the system is customized.
One transaction, several possible treatments
A private fundraising round by a covered foreign AI developer could be prohibited for a U.S. investor if the other conditions are met. The purchase of securities traded on an exchange or over the counter would in principle qualify for an exception. Certain governance rights exceeding ordinary minority shareholder protections may, however, jeopardize that exception.