Trump Revokes Biden AI Chip Export Controls

The Trump administration has rescinded the Biden-era AI Diffusion Rule, which would have implemented broad export controls on U.S.-made AI chips and model weights, restricting their sale to most countries except a select group of allies. The Commerce Department and its Bureau of Industry and Security (BIS) argued the rule would have hampered American innovation and foreign relations, with major tech companies such as Microsoft and Nvidia warning it could drive customers to Chinese competitors. The Trump administration plans to introduce a replacement policy that is more inclusive of allies and focuses on targeted controls against adversaries, though details are not yet finalized. In the meantime, BIS has reiterated that the use of Huawei Ascend chips violates U.S. export controls and cautioned about Chinese access to U.S. AI infrastructure. The policy shift moves away from broad, tiered restrictions toward more negotiable, targeted measures. The administration asserts that the new approach will safeguard national security while supporting U.S. leadership in AI technology.