BIS - Department of Commerce Announces Rescission of Biden-Era AI Diffusion Rule

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This BIS press release marks a significant U.S. policy pivot on AI chip export controls, relevant to understanding how compute governance and AI diffusion policy are evolving under the Trump Administration in 2025.

Metadata

Importance: 62/100press releasenews

Summary

The Trump Administration rescinded the Biden Administration's AI Diffusion Rule before its May 15, 2025 effective date, characterizing it as overly burdensome and diplomatically damaging. Simultaneously, BIS announced targeted semiconductor export controls focused on Chinese advanced computing chips and preventing U.S. AI chips from being used in Chinese AI model training.

Key Points

•The Biden Administration's AI Diffusion Rule, set to take effect May 15, 2025, was rescinded by the Trump Administration as stifling innovation.
•BIS issued guidance on risks from Chinese advanced computing chips and supply chain protection measures as replacement policy.
•The Trump Administration criticized the rule for downgrading certain allied countries' status, damaging diplomatic relations.
•New export controls specifically target U.S. AI chips being used for Chinese AI model training, reflecting national security concerns.
•The policy shift signals a move away from broad tiered restrictions toward more targeted chip-specific export controls.

Cited by 2 pages

Page	Type	Quality
Compute Governance	Concept	58.0
AI Proliferation	Risk	60.0

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**FOR IMMEDIATE RELEASE \|** May 13, 2025 **\|** Media Contact: [OCPA@bis.doc.gov](mailto:OCPA@bis.doc.gov)

## Department of Commerce Announces Rescission of Biden-Era Artificial Intelligence Diffusion Rule, Strengthens Chip-Related Export Controls

[Download as PDF](https://media.bis.gov/sites/default/files/documents/05.07%20Recission%20of%20AI%20Diffusion%20Press%20Release.pdf)

* * *

**WASHINGTON, D.C.**— Today, the Department of Commerce (DOC) announced a rescission of the Biden Administration’s AI Diffusion Rule, while rolling out additional steps to strengthen export controls on semiconductors worldwide.

The AI Diffusion Rule was issued on January 15, 2025, with compliance requirements that were set to come into effect on May 15, 2025.  These new requirements would have stifled American innovation and saddled companies with burdensome new regulatory requirements.  The AI Diffusion Rule also would have undermined U.S. diplomatic relations with dozens of countries by downgrading them to second-tier status.

BIS plans to publish a regulation formalizing the rescission and will issue a replacement rule in the future.

Under Secretary of Commerce for Industry and Security Jeffery Kessler has instructed BIS enforcement officials not to enforce the Biden Administration’s AI Diffusion Rule, stating:

“The Trump Administration will pursue a bold, inclusive strategy to American AI technology with trusted foreign countries around the world, while keeping the technology out of the hands of our adversaries.  At the same time, we reject the Biden Administration’s attempt to impose its own ill-conceived and counterproductive AI policies on the American people.”

In addition, BIS today announced actions to strengthen export controls for overseas AI chips, including:

•    Issuing [guidance](https://www.bis.gov/media/1575) alerting industry to the risks of using PRC advanced computing ICs, including specific Huawei Ascend chips.

•    Issuing [guidance](https://www.bis.gov/media/1577) warning the public about the potential consequences of allowing U.S. AI chips to be used for training and inference of Chinese AI models.

•    Issuing [guidance](https://www.bis.

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