The Trump administration is set to reverse the Biden-era U.S. chip export restrictions, known as the “AI diffusion rule,” halting their implementation just days before they were scheduled to take effect.
This move will significantly impact the global flow of artificial intelligence semiconductors, allowing U.S. tech giants like Nvidia and AMD greater access to international markets.
A spokesperson from the Department of Commerce confirmed the change, following an earlier report from Bloomberg. In response, Nvidia’s stock rose, with the company praising the rollback as a victory for U.S. innovation.
“We welcome the Administration’s leadership on AI policy,” said an Nvidia representative.
“This decision provides America with a once-in-a-generation opportunity to lead the next industrial revolution, create high-paying jobs, build new U.S.-supplied infrastructure, and reduce the trade deficit.”
The “AI Diffusion Rule,” introduced in the final days of the Biden administration, would have categorized countries into three tiers, each with varying restrictions on the shipment of advanced AI chips from companies like Nvidia, AMD, and Intel.
The rule, which was set to take effect on May 15, would have required special licenses for chip exports to certain countries.
Chipmakers, including Nvidia and AMD, voiced strong opposition to the tiered restrictions, arguing that they would undermine U.S. leadership in the tech sector.
“The Biden AI rule is overly complex and bureaucratic,” said a Department of Commerce spokesperson. “We will replace it with a much simpler rule that unleashes American innovation and ensures American AI dominance.”
AMD CEO Lisa Su emphasized the need to balance national security concerns with the need for greater global access to U.S. chips. Nvidia CEO Jensen Huang also expressed concerns earlier this week, warning that excluding China from the AI chip market would result in a “tremendous loss.”
As the U.S. adapts its policies to stay competitive in the rapidly evolving global AI landscape, the shift reflects a broader effort to strengthen business interests and maintain leadership in the technological sector.
The administration’s move signals a renewed push to balance security with economic growth in the face of increasing global competition.
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