Trump Administration Reverses Biden's AI Export Regulations

The Trump administration has officially rescinded the Biden administration's Artificial Intelligence (AI) Diffusion Rule, just days before it was set to take effect. This move marks a significant shift in U.S. policy regarding the export of AI technology and chips, particularly to countries deemed adversarial.

Key Takeaways

• The U.S. Department of Commerce (DOC) has rescinded the AI Diffusion Rule introduced by Biden.
• The rule aimed to impose export limits on AI chips to various countries, categorizing them into three tiers.
• The Trump administration plans to replace the rule with a strategy focused on negotiations rather than blanket restrictions.
• Companies are reminded of existing export rules, particularly concerning Huawei's AI chips.

Overview of the AI Diffusion Rule

The AI Diffusion Rule, which was set to come into effect on May 15, 2025, was designed to regulate the export of U.S.-made AI chips. It categorized countries into three tiers:

1. Tier 1: Countries like Japan and South Korea with no export restrictions.
2. Tier 2: Countries such as Mexico and Portugal facing new export limits.
3. Tier 3: Adversarial nations like China and Russia facing tightened controls.

This tiered approach aimed to balance the promotion of U.S. technology while safeguarding national security interests.

The Rescission Announcement

On May 13, 2025, the DOC announced that it would not enforce the AI Diffusion Rule, signaling a departure from the previous administration's approach. U.S. Secretary of Commerce for Industry and Security, Jeffrey Kessler, stated that the Trump administration would pursue a more inclusive strategy for American AI technology, focusing on partnerships with trusted foreign nations while keeping technology away from adversaries.

Future Plans for AI Regulations

While the DOC has rescinded the existing rule, it has indicated plans to issue a new regulation in the future. This new framework is expected to emphasize direct negotiations with countries rather than imposing broad restrictions. The administration aims to create a more flexible and strategic approach to AI technology exports.

Industry Guidance and Compliance

In the interim, the DOC has provided guidance to the industry, reminding companies of their obligations under existing export laws. Key points include:

• Prohibition on Huawei Chips: Using Huawei’s Ascend AI chips anywhere in the world is a violation of U.S. export rules.
• Training AI Models: Companies are warned against allowing U.S. AI chips to be used for training AI models in China, which could lead to significant security risks.
• Supply Chain Protection: Recommendations have been made to protect chip supply chains from diversion tactics that could undermine U.S. technology.

Conclusion

The rescission of the AI Diffusion Rule represents a pivotal moment in U.S. technology policy, reflecting a broader shift towards a more negotiation-based approach to international relations regarding AI. As the Trump administration prepares to unveil its new strategy, the tech industry will be closely monitoring developments to understand the implications for global AI technology exports.

Sources

• Trump administration officially rescinds Biden's AI diffusion rules, TechCrunch.