The Biden administration's controversial AI Diffusion rules aimed to restrict AI chip exports were rescinded by the US Commerce Department. Officials expressed that these rules would have impeded American innovation and harmed diplomatic relations by downgrading nations to second-tier status. Following pushback from US tech firms concerned about losing competitive advantage to China, the Trump administration plans a new approach. The guidance released also highlights risks of IaaS providers potentially enabling Chinese enterprises through cloud services, indicating the complexity and ongoing challenges in US trade policy concerning semiconductor technology.
âThe AI Diffusion Rule also would have undermined US diplomatic relations with dozens of countries by downgrading them to second-tier status.â
âBiden-era restrictions faced pushback from US tech firms, arguing that restricting access to AI infrastructure would drive countries to seek support from China instead.â}],
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