The U.S. Department of Commerce (DOC) announced the rescission of the Biden Administration’s AI Diffusion Rule, which had been set to take effect on May 15, 2025. The rule was criticized for potentially stifling American innovation and complicating regulatory burdens for businesses while also damaging U.S. diplomatic relationships. Under Secretary of Commerce Jeffery Kessler emphasized a new strategy focused on sharing AI technology with trusted allies while restricting access for adversaries. In addition, further steps were introduced to enhance export controls on semiconductor technology, specifically concerning the risks associated with Chinese advanced computing chips, such as those from Huawei. The Bureau of Industry and Security (BIS) will issue guidance to U.S. companies on safeguarding their supply chains and mitigating risks related to the use of AI chips in China. These measures aim to solidify the U.S.’s position as a leader in AI innovation and global dominance.
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