The Trump administration is set to revise a Biden-era rule that limited the export of advanced artificial intelligence (AI) chips, the U.S. Department of Commerce confirmed on Wednesday.
The regulation, introduced in January just before the end of President Joe Biden’s term, aimed to control AI chip exports to protect U.S. technology leadership and curb China’s access to high-performance computing that could enhance its military capabilities. It divided the world into three tiers to determine the level of access countries would have to advanced chips, with China, Russia, Iran, and North Korea facing the strictest restrictions.
A spokesperson for the Commerce Department described the current rule as “overly complex, overly bureaucratic, and would stymie American innovation.” The administration plans to replace it with a simpler regulation designed to foster innovation and maintain U.S. dominance in AI.
Officials are considering replacing the tiered system with a global licensing regime based on government-to-government agreements. The Biden-era rule, which was scheduled to take effect on May 15, has been criticized as “unenforceable.”
The news has already affected the stock market. Shares of Nvidia, a key AI chipmaker that stands to gain from expanded exports, rose 3% after the announcement before dipping 0.7% in after-hours trading.
The Commerce Department did not specify a timeline for the new rule, stating that internal discussions are still ongoing.
