US to rescind curbs on AI chip exports

Business news | May 8, 2025

By Peter Clarke

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The US government is going to rescind and replace the Export Framework for Artificial Intelligence Diffusion, according to reports quoting a Department of Commerce spokeswoman.

The framework is a tiered regime of export controls that was one of the last acts of President Biden’s administration, according to reports quoting a Department of Commerce spokeswoman.

This is likely to meet with approval from the SIA industry body and Nvidia in particular. They and several others spoke out against the AI diffusion regime as it was being introduced. It raised the prospect of more or less ending legitimate AI chip sales into China and hurt the prospects of the Nvidia and AMD amongst others.

SIA, Nvidia slam proposed global restrictions on US AI chip exports

The rule was intended to further restrict AI chip and technology exports and divided the world up into different tiers of access. The framework was issued in January and was due to come into force on May 15.

“The Biden AI rule is overly complex, overly bureaucratic, and would stymie American innovation. We will be replacing it with a much simpler rule that unleashes American innovation and ensures American AI dominance,” reports quoted a Department of Commerce spokeswoman saying Wednesday.

It remains unclear what, if anything, will replace the AI Diffusion rule. But it is expected to draw a different balance between US trade and national security. Since the framework was announced there have been numerous reports of smuggling of US AI chips into China as well as China’s ability to serve its AI demand with domestically produced chips.