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BIS Announces Plans to Replace AI Diffusion Rule, Issue New Chip Guidance

The Bureau of Industry and Security officially announced May 13 that it plans to rescind the Biden administration’s AI diffusion export control rule and issue a “replacement rule in the future.” BIS enforcement officials won't be enforcing the Biden-era rule, the agency said, which was scheduled to take effect May 15. The agency said it plans to publish a formal rescission notice in the Federal Register.

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BIS also said it plans to issue new guidance to clarify that using Huawei Ascend chips “anywhere in the world violates U.S. export controls” and to warn people and companies about the possible penalties they could face if they allow U.S. AI chips to be used for "training and interference of Chinese AI models." Additional guidance will instruct U.S. companies on how to protect supply chains against diversion tactics, the agency said.