New York, May 14 (AP) After a week of promises to alter the policy, the US Department of Commerce has rescinded a Biden-era rule due to take effect Thursday that placed limits on the number of artificial intelligence chips that could be exported to certain international markets without federal approval.

“These new requirements would have stifled American innovation and saddled companies with burdensome new regulatory requirements,” the Commerce Department stated in its guidance.

The Biden administration had established the export framework in an attempt to balance national security concerns about the technology with the economic interests of producers and other countries.

While the United States had already restricted exports to adversaries such as China and Russia, some of those controls had loopholes and the rule would have set limits on a much broader group of countries.

Commerce Undersecretary Jeffery Kessler said Tuesday that the Trump administration work to replace the now-rescinded rule.

“The Trump Administration will pursue a bold, inclusive strategy to American AI technology with trusted foreign countries around the world, while keeping the technology out of the hands of our adversaries." (AP) GRS GRS

Export control rollback on AI chip limits restores regulatory flexibility while promising a new trusted-partner export framework. The Department of Commerce withdrew a rule that would have limited exports of advanced AI chips to a broad group of foreign markets without federal approval, concluding the requirements would hinder innovation and impose regulatory burdens. The rescission follows prior efforts to balance national security export controls with economic interests and closes a regulatory chapter while announcing plans to replace the rule with a framework focused on trade with trusted partners and preventing transfers to adversaries.