Is Trump Planning to Revise AI Chip Export Controls? U.S. Department of Commerce: Simplifying "Biden's Rules" Will Foster Innovation!

A spokesperson for the US Department of Commerce said on Wednesday that President Trump plans to lift restrictions imposed during the Biden administration on exports of advanced artificial intelligence (AI) chips.

The spokesperson stated, "Biden's AI rules are overly complex and bureaucratic, hindering US innovation. We will replace them with simpler rules to unleash US innovation and ensure US dominance in the AI field."

In January of this year, just a week before Biden left office, he issued a regulation titled the "Framework for Artificial Intelligence Diffusion Export Controls." This regulation established a "three-tiered licensing system" for chips used to power AI computing data centers, limiting the quantity of advanced AI chips accessible to various countries and regions.

The first tier includes approximately 18 countries and regions, such as the Group of Seven (G7) members, as well as Australia, New Zealand, South Korea, the Netherlands, and Ireland, which will face no restrictions.

The second tier includes around 120 countries, such as Singapore, Israel, Saudi Arabia, and the UAE. For these countries, exports exceeding the quota will be subject to quantitative and licensing restrictions.

The third tier includes countries and regions such as mainland China (including Hong Kong and Macau), Iran, Russia, and North Korea, to which US companies will effectively be unable to export.

Companies will be required to comply with these restrictions starting from May 15. Biden's initial intention was to retain the most advanced computing capabilities within the US and its allies. However, the regulation faced criticism from various quarters immediately after its release, with US tech companies such as Nvidia and Oracle among the critics.

According to sources familiar with the matter, the Trump administration will not enforce the so-called "AI diffusion rules" after they take effect on May 15, but a final decision to repeal the regulation has not yet been made. Meanwhile, Trump administration officials are actively promoting a new regulation aimed at strengthening controls on overseas chips.

According to one of the sources, the government's decision could be announced as early as Thursday, US Eastern Time.

However, it remains uncertain whether Trump's final decision will be to ease controls or "double down" on them. Last week, another source revealed that Trump administration officials are considering abandoning the original "tiered licensing system" and replacing it with a "global licensing system" established through intergovernmental agreements. This suggests that chip controls could ultimately become a tool for Trump's trade negotiations.

US Secretary of Commerce Howard Lutnick also revealed at a conference in March that he hoped to include export controls in trade negotiations.

Bernstein analyst Stacy Rasgon commented that the news was positive, noting that the move "looks good for now" and that the reported policy changes "eliminated some short-term uncertainties."

"But I don't know what he is expected to use to replace them," he added.