Trump Administration Formally Revokes Biden's AI Diffusion Regulations

After weeks of swirling rumors, the U.S. Department of Commerce (DOC) has officially pulled the plug on the Biden administration's Artificial Intelligence Diffusion Rule, just days before its scheduled implementation.
Originally unveiled by former President Joe Biden in January and slated to take effect on May 15, the rule aimed to introduce unprecedented export limits on U.S.-made AI chips to numerous countries, while also tightening existing restrictions. However, on Tuesday, the DOC declared that it would not enforce the Biden-era regulation. According to Bloomberg, the DOC is gearing up to introduce a new rule that emphasizes direct negotiations with countries rather than imposing sweeping restrictions.
The Three-Tier System
Biden's proposed rule categorized countries into three tiers, each with varying degrees of restrictions:
- Tier 1: Countries like Japan and South Korea would have faced no export restrictions, continuing business as usual.
- Tier 2: Regions such as Mexico and Portugal would have encountered new chip export limits for the first time.
- Tier 3: Nations like China and Russia would have been subjected to even stricter controls.
Interim Guidance from the DOC
In the absence of the new rule, the DOC issued some interim guidance for the industry on Tuesday. It highlighted that using Huawei's Ascend AI chips anywhere globally breaches U.S. export rules. Additionally, the DOC cautioned companies about the risks associated with allowing U.S. AI chips to be used for training AI models in China and suggested measures to safeguard chip supply chains against diversion tactics.
Statement from the Commerce Secretary
U.S. Secretary of Commerce for Industry and Security Jeffrey Kessler released a statement, saying, “The Trump Administration will pursue a bold, inclusive strategy to share 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.”
This move signals a significant shift in U.S. policy on AI technology exports, setting the stage for a more nuanced approach in the future.
Related article
Cognichip Unveils AI-Driven Chip Development to Accelerate Semiconductor Innovation
Chips are vital to the AI industry, yet their development lags behind the rapid pace of new AI models and products.Cognichip aims to revolutionize chip design with a foundational AI model to expedite
Nvidia's H20 AI Chips May Escape Export Controls Temporarily
Nvidia's H20 AI Chip Escapes Export Restrictions in Deal with Trump Administration
Nvidia CEO Jensen Huang has reportedly secured an agreement with the Trump administration, allowing the company to continue exporting its H20 AI chips to China. This move comes after Huang promised to invest in new A
AMD Anticipates $800M Charge Due to U.S. License Requirement for AI Chips
AMD Faces Potential $800 Million Impact from U.S. Export Controls on AI Chips
Advanced Micro Devices (AMD) has warned that the U.S. government's new licensing requirements for exporting AI chips to China and several other countries could significantly affect its financial performance. In a recent S
Comments (3)
0/200
AnthonyMartinez
July 28, 2025 at 4:23:07 AM EDT
Wow, scrapping Biden's AI rules right before they kicked in? That's a bold move! Curious to see how this shakes up AI development—more freedom for innovation or a wild west scenario? 🤔
0
SamuelAdams
July 23, 2025 at 12:59:29 AM EDT
Wow, scrapping the AI Diffusion Rule feels like a wild move! Kinda curious how this shakes up the tech scene—more freedom for innovation or a recipe for chaos? 🤔
0
RonaldMartinez
July 23, 2025 at 12:59:29 AM EDT
Wow, scrapping those AI rules feels like a plot twist! Curious to see how this shakes up innovation. 🚀
0
After weeks of swirling rumors, the U.S. Department of Commerce (DOC) has officially pulled the plug on the Biden administration's Artificial Intelligence Diffusion Rule, just days before its scheduled implementation.
Originally unveiled by former President Joe Biden in January and slated to take effect on May 15, the rule aimed to introduce unprecedented export limits on U.S.-made AI chips to numerous countries, while also tightening existing restrictions. However, on Tuesday, the DOC declared that it would not enforce the Biden-era regulation. According to Bloomberg, the DOC is gearing up to introduce a new rule that emphasizes direct negotiations with countries rather than imposing sweeping restrictions.
The Three-Tier System
Biden's proposed rule categorized countries into three tiers, each with varying degrees of restrictions:
- Tier 1: Countries like Japan and South Korea would have faced no export restrictions, continuing business as usual.
- Tier 2: Regions such as Mexico and Portugal would have encountered new chip export limits for the first time.
- Tier 3: Nations like China and Russia would have been subjected to even stricter controls.
Interim Guidance from the DOC
In the absence of the new rule, the DOC issued some interim guidance for the industry on Tuesday. It highlighted that using Huawei's Ascend AI chips anywhere globally breaches U.S. export rules. Additionally, the DOC cautioned companies about the risks associated with allowing U.S. AI chips to be used for training AI models in China and suggested measures to safeguard chip supply chains against diversion tactics.
Statement from the Commerce Secretary
U.S. Secretary of Commerce for Industry and Security Jeffrey Kessler released a statement, saying, “The Trump Administration will pursue a bold, inclusive strategy to share 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.”
This move signals a significant shift in U.S. policy on AI technology exports, setting the stage for a more nuanced approach in the future.




Wow, scrapping Biden's AI rules right before they kicked in? That's a bold move! Curious to see how this shakes up AI development—more freedom for innovation or a wild west scenario? 🤔




Wow, scrapping the AI Diffusion Rule feels like a wild move! Kinda curious how this shakes up the tech scene—more freedom for innovation or a recipe for chaos? 🤔




Wow, scrapping those AI rules feels like a plot twist! Curious to see how this shakes up innovation. 🚀












