Trump Administration Rescinds Biden's AI Chip Export Restrictions
The US Department of Commerce (DOC) officially rescinded the Biden administration's Artificial Intelligence Diffusion Rule just days before its implementation.
The rule, introduced by former President Biden in January and slated to take effect on May 15, would have imposed new limits on US-made AI chip exports. These restrictions targeted various countries with varying degrees of limitations.
The DOC announced it instructed staff to cease enforcement of the Biden-era regulation. A replacement rule is expected, likely prioritizing direct negotiations with countries over blanket restrictions, according to a Bloomberg report. Read more.
Biden's Three-Tiered System
Biden's rule divided countries into three tiers with varying restrictions:
- Tier 1: Countries like Japan and South Korea would have faced no export restrictions.
- Tier 2: Regions like Mexico and Portugal would have seen new chip export limits.
- Tier 3: Countries like China and Russia would have faced stricter controls.
New Guidance Issued
The DOC issued new guidance for the industry, including reminders about existing restrictions on using Huawei's Ascend AI chips and warnings about using US AI chips to train AI models in China. The guidance also recommended ways to protect chip supply chains.
“The Trump Administration will pursue a bold, inclusive strategy to [share] American AI technology with trusted foreign countries around the world, while keeping the technology out of the hands of our adversaries," said US Secretary of Commerce for Industry and Security Jeffery Kessler. "At the same time, we reject the Biden Administration’s attempt to impose its own ill-conceived and counterproductive AI policies on the American people.”
The previous administration's rule can be found here: DOC Announcement and background on the original proposal is available here: TechCrunch Article and rumors leading up to the rescission here: Axios Article.
