AI Chip Export Rule Withdrawn by U.S. Commerce Department

The U.S. Department of Commerce has withdrawn a planned regulation regarding the export of AI chips. The decision was made public on a government website, but no justification was provided for this sudden change. The rule was initially drafted for inter-agency review at the end of February.

This withdrawal is another instance of policy reversal during the efforts to overhaul a regulatory framework originally set by President Biden in January 2025. The now-pulled rule was intended to simplify AI export procedures while promoting U.S. supremacy in the AI sector.

The original plan, according to documents seen by Reuters, demanded security assurances or investments in U.S. data centers from foreign nations for chip exports exceeding 200,000 units. Despite being intended to streamline efforts, the draft faced criticism for being too complicated. The Commerce Department has stated that new rules will be debated but will avoid what they deemed a burdensome strategy proposed by the prior administration.