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Trump administration rescinds Biden AI chip export rule

The U.S. Department of Commerce formally rescinded the Biden Administration's AI chip export rule on May 15, 2025, just before it was set to take effect.
The Biden-era regulation, introduced in January 2025, aimed to restrict the export of U.S.-made AI chips to a wide range of countries by categorizing them into three groups, each subject to different levels of export controls.
Following a week of announcements promising changes, the Commerce Department halted enforcement and issued guidance addressing risks of chip supply chain diversion and use by adversaries like China.
Commerce Secretary Jeffery Kessler stated the Trump Administration will adopt a bold, inclusive AI strategy with trusted countries while keeping technology away from adversaries.
The rescission suggests the Trump Administration seeks to replace the broader Biden-era framework with a different approach to regulate AI chip exports and protect innovation.

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