Trump Administration Eyes AI Chip Export Rule Overhaul

The Trump administration plans to revise a Biden-era rule limiting AI chip exports, aiming to simplify and boost innovation while blocking Chinese military advancements. The original framework divided nations into tiers restricting chip access, but changes may establish a global licensing regime. Nvidia shares reacted positively.

The Trump administration intends to dismantle a Biden-era policy that curbed AI chip exports, aiming to simplify regulations and enhance American innovation. This development comes as the current administration seeks to revise the complex tiered system that limited certain countries' access to advanced computing technology.

The original rule, introduced in January just before Biden's presidency concluded, aimed to restrict China's access to advanced AI chips, thereby preserving U.S. military and technological superiority. The Department of Commerce has criticized the rule for being overly bureaucratic and stifling innovation.

Officials are considering a new global licensing regime to regulate exports, moving away from the previously tiered approach. The rule's revision could significantly impact companies like Nvidia, whose stock experienced fluctuations following news of potential changes. The rule was set to be effective from May 15, but discussions on its modification continue.

(With inputs from agencies.)