The United States has officially revoked the controversial “AI diffusion rule” that earlier restricted the export of advanced AI chips. This change in policy is expected to immediately benefit the U.S. technology sector, which plays a critical role in the national economy.
The AI diffusion rule was introduced in the final days of the Biden administration as part of efforts to limit China’s access to advanced AI technology. The rule placed countries into three different tiers and proposed limits on the number of chips that certain nations could import, even if they were not adversaries of the US. While the rule never took full effect, it had already raised concerns among chipmakers and governments across the globe. Major chipmakers like Nvidia and AMD had argued then that the policy was not only bad for business but could also backfire by pushing US allies to turn to China for their chip needs.
The rule’s removal enables countries to gain greater access to Nvidia chips without arbitrary restrictions. According to officials, the reversal is part of a wider strategy to strengthen ties with ally countries, and ensure that US technology does not inadvertently end up in the hands of rivals like China.
"The Trump administration has just announced that we will be rescinding what's known as the Biden diffusion rule... it literally restricted the diffusion or proliferation of American technology all over the world," David Sacks, the new White House lead on AI policy said at the Saudi-US Investment Forum
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