July 4 (Reuters) - U.S. President Donald Trump's

administration is planning new restrictions on the export of AI

chips, such as those from Nvidia ( NVDA ), to Malaysia and

Thailand over concerns that the technology could be diverted to

China, Bloomberg News reported on Friday, citing people familiar

with the matter.

The draft rule from the Commerce Department is not yet

finalized and could still change, the report said.

Trump's administration has announced it planned to rescind

and replace the Biden administration's export curbs on

sophisticated artificial intelligence chips put in place by

former President Joe Biden.

The regulation aimed to restrict exports of AI chips and

technology, retain advanced computing power within the U.S. and

its allies, and expand efforts to limit China's access.

The government intends to couple the Malaysia and Thailand

controls with a formal rescission of these curbs, the Bloomberg

report said.

In June, Malaysia said it was verifying media reports that a

Chinese firm operating in the country was using servers fitted

with Nvidia ( NVDA ) chips and other AI hardware to train large language

models.

The U.S. Department of Commerce did not immediately respond

to a Reuters' request for comment. An Nvidia ( NVDA ) spokesperson

declined to comment.

(Reporting by Aishwarya Jain in Bengaluru)