France seems clearly exempt from most of the requirements. The main requirement of 740.27 is to sign a license under U.S. law, under which customers are prohibited from re-exporting ICs to non-Third 1 countries without U.S. approval.
What's more, the text refers to AIs, which can have dual uses. The concept of dual civil-military use concerns a large number of technologies, and dates back to the first nuclear technologies.
The text gives a few examples of dual-use models, such as models that simulate or facilitate the production of chemical compounds that could be used for chemical weapon creation, non conventional weapon creation or that could simplify or replace already identified dual-use goods or technologies.
These uses are already covered by existing legislation on dual-use goods, and US export control. The American legislator is therefore potentially thinking of other uses, such as satellite and radar image analysis, and electronic warfare.
As France is a nuclear-armed country with its own version of thoses technologies, it makes little sense to place it under embargo.
But France isn't going to like being obliged once again to be forced to apply American law and regulation on its soil.
As a European, I hope that alternatives to American dependence will soon appear.
[0] https://www.federalregister.gov/documents/2025/01/15/2025-00...
Even if for now France is strong-armed into applying the same restrictions, they will be in a much better position than US companies if US-Europe relations deteriorate. Something that's not entirely unlikely under Trump. We are a week into his presidency and France is already talking about deploying troops to Greenland
On the other hand, ICs could be subject to restrictions, and France has no alternative for sourcing large-capacity ICs.
The USA could use dollar-denominated transactions to broaden the scope of the text. It's not insurmountable, but it will complicate matters.
It's telling that the release from OpenAI today warns about exactly this threat in their lengthy security section: https://cdn.openai.com/o3-mini-system-card.pdf