JAKARTA The administration of the President of the United States Donald Trump plans to revoke and replace Joe Biden's era rules that limit the export of advanced artificial intelligence (AI) chips. This was said by a spokesman for the US Department of Commerce on Wednesday, April 7.
The rule, named Framework for Artificial Intelligence Diffusion, was published in January 2025, just a week before President Joe Biden's term ends. The goal is to limit access to certain countries, especially China, to advanced AI chips that can be used to improve military capabilities, while maintaining US dominance in AI technology.
However, the Trump administration considers the rules too complicated and burdens domestic innovation. "The Biden-era AI rules are too complex, bureaucratic, and will hinder American innovation," a Commerce Department spokesman said. "We will replace it with a much simpler rule that will drive innovation and ensure the dominance of AI by America."
Last week, Reuters reported that the Trump administration was working on major changes to the rules, including the possibility of removing the world's distribution system at three levels (tiers) that determine the number of advanced chips that each country can import.
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According to the spokesman, relevant officials "did not like the tier system" and called the rules "not enforced effectively." However, there is no official schedule for the issuance of new rules as internal discussions are still ongoing.
Biden's rules were originally scheduled to take effect on May 15.
In that rule, the world is divided into three levels:
Tier 1: 17 allied countries and Taiwan that can receive chips without limits.
Tier 2: Around 120 other countries have received limited quota.
Tier 3: Countries deemed at high risk, such as China, Russia, Iran, and North Korea, are prohibited from receiving AI chips at all.
The Trump administration is now considering leaving the level system and replacing it with a global license scheme based on an intergovernmental agreement (G2G).
Shares of the well-known AI chip design company, Nvidia, had increased 3% after this news emerged, due to the potential for increased sales if exports were expanded again. However, the shares fell 0.7% in trading after market hours.
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