President Donald Trump’s administration has undone one of the last regulations set by his predecessor. Today, the Department of Commerce rescinded the AI Diffusion Rule implemented by former President Joe Biden, a policy that restricted the export of US-made AI chips to select international markets. The rule was introduced by Biden’s administration in January and slated to take effect on May 15. Trump had previously walked back the broader AI guidelines adopted by Biden in October 2023 as part of his initial wave of executive orders upon taking office.
Although the Department of Commerce is not enforcing the previous AI Diffusion Rule, the Bureau of Industry and Security said it will release a replacement policy at a later date. The press release included three additional actions from the BIS:
“Issuing guidance that using Huawei Ascend chips anywhere in the world violates US export controls.
“Issuing guidance warning the public about the potential consequences of allowing US AI chips to be used for training and inference of Chinese AI models.
“Issuing guidance to US companies on how to protect supply chains against diversion tactics.”
This sector may become increasingly relevant to the US’s international affairs, including ongoing tariff negotiations with China and potential deals in the Middle East. NVIDIA may be the bellwether for the current administration’s approach to the exports of AI infrastructure. The company revealed last month that the federal government is requiring a license for the export its H20 chips to some regions, including China, Macau, Hong Kong and countries designated as D:5 under the US Arms Embargo.
