The U.S. Department of Commerce has withdrawn a proposed rule that would have required approval before exporting artificial intelligence (AI) chips around the world. The decision was posted on the Office of Management and Budget’s website on Friday.
The move ends preliminary talks on the policy, which could have affected major chipmakers such as Nvidia and Advanced Micro Devices.
According to Bloomberg News, the draft rules could require companies to seek permission from the Commerce Department to export AI chips. Licensing decisions may have been based on government agreements and the computer capabilities desired by end users.
This is part of the Trump administration’s plan to create a global export policy for AI chips, which was abandoned under the Biden administration.
Trump administration officials have made it clear that the decision to roll back the rules is still in the draft stage and discussions are preliminary in nature. The Department of Commerce announced it would not revert to the previous system governing AI exports, calling it “burdensome, overreach, and disastrous.”
Analysts said the proposed rule is one of the most important measures to govern AI chip technology around the world and could impact the chip technology supply chain of companies developing AI technology.
Exporting AI chips is important for companies developing computing infrastructure. Nvidia Corp, Advanced Micro Devices Inc, and other chip makers need global markets for sales and cooperation.
