Former President Donald Trump intends to repeal the Biden administration's restrictions on exporting high-end artificial intelligence chips, aiming to replace them with a new regulatory framework. The move is expected to take effect around the middle of May.
The current regulations, known as the AI diffusion rule, sought to control the sale of advanced AI chips to specific countries like China, the United Arab Emirates, and Saudi Arabia. The stated goal was to protect America's lead in artificial intelligence development by limiting access to powerful computing hardware.
However, the export controls have faced criticism for being difficult to enforce effectively. Reports indicate a grey market exists for the products of American companies like Nvidia, allowing prohibited countries access through intermediaries or offshore data centers.
According to reports, the Trump administration will not enforce the current policy when it is scheduled to become fully active on May 15. Instead, officials are reportedly drafting a different set of rules.
Companies like Nvidia and AMD, major producers of AI chips, have watched the policy debate closely. The initial news regarding the potential change reportedly led to fluctuations in their stock values.
The justification for rescinding the Biden-era rule centers on claims it is overly complex and bureaucratic, potentially hindering American innovation.
A Department of Commerce spokesperson confirmed the plan. "We will be replacing it with a much simpler rule that unleashes American innovation and ensures American AI dominance," a spokesperson told CNBC.