The Trump administration has prepared to rescind U.S. chip export restrictions known as the “AI diffusion rule,” effectively stopping a set of artificial intelligence semiconductor limits from taking effect next week.
Nvidia shares climbed Wednesday in reaction to the news. The company has been vocal in its stance that restricting chip exports limits U.S. leadership in advanced technology.
A spokesperson for Nvidia said in a statement, “We welcome the Administration’s leadership and new direction on AI policy.
“With the AI Diffusion Rule revoked, America will have a once-in-a-generation opportunity to lead the next industrial revolution and create high-paying U.S. jobs, build new U.S.-supplied infrastructure, and alleviate the trade deficit”, the spokesperson added.
The chip restrictions were scheduled to take effect on May 15.
“The Biden AI rule is overly complex, overly bureaucratic, and would stymie American innovation,” a Department of Commerce spokesperson said in a statement. “We will be replacing it with a much simpler rule that unleashes American innovation and ensures American AI dominance.”
Chipmakers, including Nvidia and AMD, have been against the tiered restrictions.
