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Department of Commerce Announces Rescission of Biden-Era AI Diffusion Rule, Strengthens Chip-Related Export Controls

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bis.gov·bis.gov/press-release/department-commerce-announces-recis...

This U.S. Department of Commerce press release announces the Trump administration's rescission of the Biden-era AI Diffusion Rule governing semiconductor export controls, directly affecting global AI governance and the international distribution of advanced AI compute.

Metadata

Importance: 62/100press releaseprimary source

Summary

The U.S. Department of Commerce announced the rescission of the Biden Administration's AI Diffusion Rule (issued January 15, 2025), which had imposed tiered export controls on AI chips to foreign countries. The Trump administration characterized the rule as burdensome and diplomatically counterproductive, while simultaneously announcing new guidance strengthening controls specifically targeting Chinese AI chips (including Huawei Ascend) and preventing U.S. chips from being used to train Chinese AI models.

Key Points

  • •The Biden-era AI Diffusion Rule, set to take effect May 15, 2025, was rescinded; BIS will issue a replacement rule in the future.
  • •The Trump administration criticized the rule for stifling innovation, imposing regulatory burdens, and downgrading diplomatic relations with allied countries.
  • •New guidance was issued warning against use of PRC advanced computing chips, specifically Huawei Ascend chips, by U.S. entities.
  • •Additional guidance warns against allowing U.S. AI chips to be used for training or inference of Chinese AI models.
  • •BIS issued supply chain diversion guidance to help U.S. companies prevent chips from reaching adversaries.

Cited by 1 page

PageTypeQuality
AI Chip Governance Supply ChainConcept--

1 FactBase fact citing this source

EntityPropertyValueAs Of
Bureau of Industry and Securitykey-eventRescinded Biden-era AI Diffusion Rule before its compliance dateMay 2025

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 Skip to main content FOR IMMEDIATE RELEASE | May 13, 2025 | Media Contact: [email protected] 

 Department of Commerce Announces Rescission of Biden-Era Artificial Intelligence Diffusion Rule, Strengthens Chip-Related Export Controls

 Download as PDF WASHINGTON, D.C. — Today, the Department of Commerce (DOC) announced a rescission of the Biden Administration’s AI Diffusion Rule, while rolling out additional steps to strengthen export controls on semiconductors worldwide.

 The AI Diffusion Rule was issued on January 15, 2025, with compliance requirements that were set to come into effect on May 15, 2025.  These new requirements would have stifled American innovation and saddled companies with burdensome new regulatory requirements.  The AI Diffusion Rule also would have undermined U.S. diplomatic relations with dozens of countries by downgrading them to second-tier status.

 BIS plans to publish a regulation formalizing the rescission and will issue a replacement rule in the future.

 Under Secretary of Commerce for Industry and Security Jeffery Kessler has instructed BIS enforcement officials not to enforce the Biden Administration’s AI Diffusion Rule, stating:

 “The Trump Administration will pursue a bold, inclusive strategy to American AI technology with trusted foreign countries around the world, while keeping the technology out of the hands of our adversaries.  At the same time, we reject the Biden Administration’s attempt to impose its own ill-conceived and counterproductive AI policies on the American people.”

 In addition, BIS today announced actions to strengthen export controls for overseas AI chips, including:

 •    Issuing guidance alerting industry to the risks of using PRC advanced computing ICs, including specific Huawei Ascend chips. 
•    Issuing guidance warning the public about the potential consequences of allowing U.S. AI chips to be used for training and inference of Chinese AI models.
•    Issuing guidance to U.S. companies on how to protect supply chains against diversion tactics.

 Today’s actions ensure that the United States will remain at the forefront of AI innovation and maintain global AI dominance.
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