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Home » News » US scraps Biden-era rule that aimed to limit exports of AI chips
Finance

US scraps Biden-era rule that aimed to limit exports of AI chips

Emily CarterBy Emily Carter Finance
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Roula Khalaf, editor of the FT, selects her favorite stories in this weekly newsletter.

The United States Department of Commerce has eliminated a rule established by the Biden administration that limited exports of artificial intelligence chips, arguing that it was full of bureaucracy that made it “inappropriate,” said an American official.

The Trump administration movement occurs, since a more indulgent approach is needed for the regulation of AI and other advanced technologies nationwide and is affirmed with the emergence of Chinese companies in the sector.

Instead of allowing the controls of the Biden era to take effect on May 15, the official said that the Trump administration would write a rule that would guarantee that US technology flourished without allowing US adversaries to obtain access to technology. The official warned that the rule would not be imminent and would take some time to establish.

The export controls of “Diffusion of AI”, introduced in the last days of the presidency of Joe Biden, created a three -level license system for AI chips used in data centers, such as the powerful NVIDIA graphics processing units.

They aimed to make Chinese companies avoid export controls of the United States by accessing the issue through the third country.

The planned legislation imposed a limit on chips export volumes for all except a small number of countries, including members of G7 and Taiwan. More than 100 countries fell at this “middle” level.

The EU, NVIDIA and the broader chips industry criticized the rules, which were experiencing a period of feedback of the industry.

Nvidia did not respond immediately to a request for comments.

This is a development story

Additional reports from Michael Acton in San Francisco

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