Department of Commerce Announces Recission of Biden-era Artificial Intelligence Diffusion Rule, Strengthens Chip-related Export Controls

Excerpt:  “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.”