Trump administration to rescind, replace Biden-era global AI chip export curbs

U.S. President Donald Trump's administration plans to rescind and modify a Biden-era rule that curbed the export of sophisticated artificial intelligence (AI) chips, a spokeswoman for the Department of Commerce said on Wednesday.

The regulation was aimed at further restricting AI chip and technology exports, dividing up the world to keep advanced computing power in the United States and among its allies while finding more ways to block China's access.

Last week, Reuters reported the Trump administration was working on changes to the rule that would limit global access to AI chips, including possibly doing away with its splitting the world into tiers that help determine how many advanced semiconductors a country can obtain.

According to the spokeswoman, officials "didn't like the tiered system" and said the rule was "unenforceable." She did not have a timetable for the new rule, but said debate was still underway on the best course of action. The Biden rule was set to take effect on May 15.

Shares of Nvidia, an AI chip designer whose sales could rise if the rule were changed to increase exports, ended 3 percent higher after the news came out on Wednesday, but then dipped 0.7 percent in after-hours trade.

Trump administration officials are weighing discarding the tiered approach set by the Biden rule and replacing it with a global licensing regime with government-to-government agreements, sources told Reuters last week.

(With input from Reuters)