The Trump administration announced plans Wednesday to overhaul Biden-era restrictions on global exports of advanced artificial intelligence (AI) chips, signaling a strategic shift in balancing technological leadership with international market dynamics. A U.S. Department of Commerce spokeswoman confirmed the move to rescind and modify 2023 measures targeting AI chip and technology sales, which critics called "unenforceable" due to its tiered system limiting semiconductor access based on geopolitical alliances.
Reuters reported last week the proposed changes could streamline controls through government-to-government licensing agreements, potentially increasing semiconductor exports to global markets. The Biden administration's rule, set to take effect May 15, aimed to consolidate advanced computing power among U.S. allies while restricting access to certain regions including the Chinese mainland. Nvidia shares rose 3% following the announcement before dipping slightly in after-hours trading, reflecting market uncertainty.
Commerce officials emphasized no final decision timeline but noted debates over replacing the current framework with a unified licensing regime. The development highlights escalating competition in AI infrastructure, with implications for global tech supply chains and U.S.-China tech rivalry.
