The US Treasury has introduced new regulations aimed at restricting American investments in artificial intelligence and semiconductor sectors within specific foreign nations. This proposal expands upon the existing Outbound Investment Security Program (OISP), which has been in operation since January 2, 2025, to address national security concerns regarding strategic competitors.
The OISP, established following Executive Order 14105 from August 9, 2023, currently monitors investments in Chinese entities involving quantum technologies, AI, and chips. The program operates through a two-tier system where certain transactions are prohibited, while others require mandatory notification to the Treasury Department.
Enforcement of these rules has already commenced. On October 7, 2026, the Treasury issued its first civil penalty of $200,000 to Amidi, LLC. The fine was imposed due to the company's failure to report an investment of $92,478 made by its Chinese subsidiary into Noematrix, a firm specializing in robotics and embodied AI.
These measures align with the Comprehensive Outbound Investment National Security Act (COINS Act), signed into law on December 18, 2025. The legislation mandates an expansion of the program to include additional countries and new technology sectors, such as hypersonic systems and high-performance computing, with a final deadline for rule implementation set for March 2027.
