US Commerce Dept. rescinds AI rule, plans new chip export controls

Under Secretary of Commerce for Industry and Security, Jeffrey Kessler, instructed enforcement officials not to enforce the rescinded rule. He indicated that the Trump administration would pursue a strategy to advance American AI technology with trusted foreign partners while restricting access for adversaries. The department plans to publish a formal rescission and issue a replacement rule in the future.

In conjunction with the rescission, the Bureau of Industry and Security (BIS) announced additional measures to bolster export controls on semiconductors globally. This includes issuing guidance to the industry regarding the risks associated with People's Republic of China (PRC) advanced computing integrated circuits, specifically mentioning Huawei Ascend chips. Furthermore, guidance has been provided to U.S. companies on safeguarding their supply chains against diversion tactics, emphasizing the protection of U.S. AI chips from being used in the training and inference of Chinese AI models. These actions are intended to maintain U.S. leadership in AI innovation.