Trump administration officially rescinds Biden’s AI diffusion rules

The US Department of Commerce (DOC) has initiated a rescission of the Biden Administration’s AI Diffusion Rule which was set to come into force on 15 May to limit the export of US-made AI chips to other countries. The Bureau of Industry and Security (BIS) plans to publish a Federal Register notice formalizing the rescission and will issue a replacement rule in the future. In the meantime, the Secretary of Commerce for Industry and Security Jeffery Kessler has instructed the BIS enforcement officials not to enforce the Biden Administration’s AI Diffusion Rule. The BIS has further announced actions to strengthen export controls for overseas AI chips, including: (1) “issuing guidance that using Huawei Ascend chips anywhere in the world violates US export controls”; (2) “issuing guidance warning the public about the potential consequences of allowing US AI chips to be used for training and interference of Chinese AI models”; and (3) “issuing guidance to U.S. companies on how to protect supply chains against diversion tactics”.

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