US Preparing to Rescind, Replace AI Diffusion Export Control Rule
The Bureau of Industry and Security is planning to replace the Biden-era AI diffusion rule that is scheduled to take effect May 15, an agency spokesperson said May 7.
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"The Biden AI rule is overly complex, overly bureaucratic, and would stymie American innovation," the spokesperson said. "We will be replacing it with a much simpler rule that unleashes American innovation and ensures American AI dominance.”
The agency's comments came the same day Bloomberg reported that the Trump administration is planning to "rescind" the January AI diffusion rule, a move that President Donald Trump said could include eased restrictions on Gulf nations.
Although a final decision on the way forward hasn't yet been made, administration officials are looking to "refashion" the rule, Bloomberg reported May 7. The rule was set to introduce worldwide export license requirements for shipments of advanced chips, among other things, next week (see 2505020023, 2501130026 and 2502110074). Officials are "actively working toward a new rule that would strengthen the control of chips abroad," the report said.
The report came the same day Trump said the U.S. may be preparing to ease semiconductor-related export controls on Gulf countries.
Asked by a reporter May 7 whether the administration is planning to reduce chip export restrictions on nations in the region, Trump said: "We might be doing that, yeah." Trump was speaking after the swearing-in ceremony for David Perdue as ambassador to China. He didn't give further details.
The restrictions in the AI diffusion rule include caps on the number of chips that can be exported to certain Gulf countries, including the United Arab Emirates and Saudi Arabia.