Treasury proposes broader AI investment prohibition
Treasury proposes a broader AI investment prohibition. The current outbound investment rule remains in force.
The big change
What changed: The draft treats development of any defined “super intelligence” system as prohibited technology. Current rules also have a notifiable AI category based on end use and training compute.
Why it matters: Agent harnesses that extend third-party models can count as development. The proposed prohibition still depends on the investor, transaction, foreign person and technology involved. Strictly internal, non-commercial use of an off-the-shelf system does not count as development solely on that basis.
What to watch: Treasury seeks comment on the AI definition. The final rule will set an effective date; Part 850 obligations remain operative.







