In a significant policy shift, U.S. President Donald Trump’s administration announced plans to revise and potentially rescind a rule from the Biden era that limited the export of advanced artificial intelligence (AI) chips. The decision could reshape global access to cutting-edge technology.
The original regulation aimed to restrict the export of sophisticated AI chips and technologies, segmenting the world to ensure that advanced computing power remained within the United States and its allies. The rule also sought to limit access to other nations, prompting debates about its effectiveness and fairness.
A spokeswoman for the Department of Commerce stated on Wednesday that officials found the previous rule’s tiered system “unenforceable” and expressed concerns about its practicality. “They didn’t like the tiered system,” she mentioned, highlighting the administration’s intent to find a more workable solution.
Last week, sources informed Reuters that the Trump administration was considering abolishing the tiered approach in favor of a global licensing regime. This new system would rely on government-to-government agreements to manage the export of AI chips, potentially simplifying the process and creating more consistent standards worldwide.
The Biden-era rule, which was set to take effect on May 15, had faced criticism from various industry stakeholders. Tech companies like Nvidia, a prominent AI chip designer, saw fluctuations in their stock prices following the news. Nvidia’s shares rose by 3% after the announcement but dipped slightly in after-hours trading.
The debate over AI chip exports is crucial as nations worldwide race to develop and implement advanced technologies. Changes to export regulations could impact technological development, international relations, and global markets, influencing how countries access and utilize AI capabilities.
While the Trump administration has not provided a specific timeline for implementing the new rule, discussions are ongoing to determine the best course of action. The move underscores the dynamic nature of technology policy and its far-reaching implications for innovation and global cooperation.
