The US Department of Commerce, under the Trump administration, has decided to withdraw the impending “AI Diffusion Rule.” This policy, developed in the final month of the Biden administration, intended to categorize countries into three tiers. These tiers would have dictated various levels of restrictions on the export of AI semiconductor technology based on factors like geopolitical and national security concerns.
Close allies like the UK and South Korea faced no restrictions, while countries like Singapore and India encountered limited controls. Meanwhile, nations such as Russia and China faced heavy export restrictions. The policy aimed to restrict China’s access to US chips and pressure nations to enhance their security requirements around AI technology.
This policy met with significant opposition from the international community. They argued the categorization seemed arbitrary and threatened their relations with the US. Notably, US chipmakers like Nvidia criticized the proposal. They expressed concerns over potential complications it could introduce to international trade.
Echoing these concerns, the Trump administration stated, “These new requirements would have stifled American innovation and saddled companies with burdensome new regulatory requirements. The AI Diffusion Rule also would have undermined U.S. diplomatic relations with dozens of countries.”
Moving forward, the US intends to handle export policies, particularly to countries like Malaysia and Thailand, known for diverting chips to China, on a country-by-country basis. The reevaluation of export policies is seen as a strategic stride towards a more tailored approach.
Additionally, the Bureau of Industry and Security issued a warning that using Huawei Ascend chips globally violates US export controls. They advise against employing US technology in the training of Chinese AI models. The Trump administration aims to bolster American AI technology collaboration with trusted allies while ensuring adversaries remain at arm’s length.
The Under Secretary of Commerce for Industry and Security, Jeffery Kessler, stated, “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. At the same time, we reject the Biden Administration’s attempt to impose its own ill-conceived and counterproductive AI policies on the American people.”