President Trump’s administration has announced plans to rescind and modify a Biden-era rule that restricted the export of advanced artificial intelligence chips. The rule, known as the Framework for Artificial Intelligence Diffusion, was implemented in January to limit the global access to AI chips, with the aim of keeping advanced computing power in the United States and its allies while preventing countries like China from obtaining these technologies.
The Trump administration believes that the Biden AI rule is overly complex and bureaucratic, hindering American innovation. A Commerce Department spokeswoman stated that a simpler rule will be put in place to unleash American innovation and ensure dominance in the field of AI. The decision to rescind and modify the rule comes after concerns were raised about its enforceability and the tiered system it employed to control access to AI chips.
Under the Biden rule, the world was divided into three tiers based on the level of access countries had to AI chips. The first tier included 17 countries and Taiwan, allowing them unlimited access to the chips. The second tier consisted of 120 countries with capped access, while the third tier, which included countries like China, Russia, Iran, and North Korea, was completely blocked from obtaining the chips.
The Trump administration is considering moving away from the tiered approach and implementing a global licensing regime with government-to-government agreements. This new approach would potentially change the landscape of AI chip exports and could have significant implications for companies like Nvidia, whose sales could increase if restrictions on exports are lifted.
Overall, the decision to rescind and modify the Biden-era rule reflects the ongoing efforts to maintain US leadership in AI technology while balancing national security concerns. The Commerce Department is still in the process of finalizing the new rule, and the timeline for its implementation remains uncertain. The debate on the best course of action continues as stakeholders navigate the complex landscape of AI chip exports.
