•International Business•7 min read
Cross-Border Deals in the Age of AI Export Controls
How export controls, sanctions, and semiconductor policy intersect with AI-heavy M&A and venture investments.
Every cross-border AI deal now comes with an export control question. Access to compute, advanced chips, and sensitive datasets has become a negotiation in its own right.
Screening Early Saves Deals
We run parallel reviews for CFIUS (US), FIRB (Australia), and emerging EU screening mechanisms. Key triggers:
- Transfer of dual-use algorithms or high-performance compute.
- Investors with ties to jurisdictions subject to enhanced scrutiny.
- Data flows involving biometrics, geospatial intelligence, or defence applications.
Negotiating Risk Allocation
Purchase agreements now include dedicated export representations, data escrow provisions, and termination rights tied to regulator outcomes. Investors expect a mitigation plan before term sheet signature.
Operational Playbook
- Classify technology: Map algorithms, datasets, and compute resources to export schedules.
- Assess investor footprint: Understand beneficial ownership and prior filings.
- Design mitigation: Consider proxy boards, data localisation, or staged access rights.
- Synchronise filings: Prepare disclosure packs that can serve multiple regulators.
Approvals are achievable—especially when regulators see a coherent governance plan. Deals fail when export diligence is left to the end.