The US Department of Commerce has rescinded the AI Diffusion Rule, a policy introduced by the Biden administration that restricted the export of US-made AI chips to select international markets. This rule was set to take effect on May 15 but has been canceled by the Trump administration.
The rescinded rule aimed to block AI chip access to countries of concern, notably China, due to national security and foreign policy interests. However, critics argued that it would have damaged American innovation and diplomatic relations with numerous countries.
The rule had divided countries into three tiers, with varying levels of restrictions on AI chip exports, and imposed controls on specific closed AI model weights and advanced computing chips.
The Department of Commerce will release a replacement policy later, potentially tied to ongoing tariff negotiations with China and potential deals in the Middle East. The Trump administration plans to pursue a bold, inclusive strategy to share American AI technology with trusted foreign countries while keeping it out of the hands of adversaries.
