US Reverses AI Chip Export Rule

The US Department of Commerce has withdrawn a Biden-era rule limiting AI chip exports to certain countries. The rule intended to balance US national security and economic interests, but was criticized for potentially hampering innovation. The Trump administration plans to reformulate this strategy.

The US Department of Commerce has withdrawn a rule, initially set to take effect this Thursday, that would have limited the export of artificial intelligence chips to certain international markets unless approved by the federal government.

The intent behind the rule, conceived during the Biden administration, was to navigate the delicate balance between safeguarding national security and supporting economic interests. The framework sought to strengthen restrictions on exports to nations such as China and Russia, expanding it to cover a broader range of countries due to existing loopholes.

Speaking on Tuesday, Commerce Undersecretary Jeffery Kessler announced that the Trump administration will propose a new framework. Kessler emphasized a commitment to deploying a strategy that promotes American AI technology to allied nations while ensuring it doesn't fall into the hands of adversaries.

(With inputs from agencies.)