Trump Administration Scraps Biden's AI Chip Export Controls

The Department of Commerce officially rescinded the Biden administration's Artificial Intelligence Diffusion Rule on Tuesday, just days before its May 15 implementation date. The rule would have imposed first-ever export restrictions on U.S.-made AI chips to dozens of countries while tightening existing controls on China and Russia.

Instead of implementing blanket restrictions, the DOC signaled a shift toward direct country-by-country negotiations. The department released interim guidance reminding companies that using Huawei's Ascend AI chips anywhere violates U.S. export rules and warned about consequences of allowing U.S. chips to train AI models in China. Commerce Secretary for Industry and Security Jeffery Kessler criticized the previous administration's approach, calling it 'ill-conceived and counterproductive.'

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