The U.S. Department of Commerce has scrapped a soon-to-be-implemented Biden-era rule that would have significantly restricted AI chip exports to numerous international markets, bowing to pressure from the tech industry and foreign governments.
The now-rescinded rule, set to take effect Thursday, was criticized for potentially stifling American innovation and creating burdensome regulations. Â
The Commerce Department acknowledged these concerns, stating the rule would have “stifled American innovation and saddled companies with burdensome new regulatory requirements.”
The original framework aimed to balance national security with economic interests, but its broad restrictions, impacting over 100 countries, drew sharp criticism from chipmakers like Nvidia and AMD, who argued it could drive affected nations towards Chinese AI technology.
The European Commission also welcomed the reversal, stating that the rule would have “undermined U.S. diplomatic relations.”
The Trump administration has pledged to introduce a replacement rule that fosters collaboration with “trusted foreign countries” while safeguarding against adversaries, though details remain undisclosed.Â
