Artificial Intelligence

Trump to Scrap Biden's AI Chip Export Controls

MAY 8 2025·Updated MAY 9 2025

Story

Above: U.S. President Donald Trump (left) and Jensen Huang, co-founder and CEO of AI chipmaker Nvidia Corp., in the Cross Hall of the White House in Washington, D.C., U.S., on Wednesday, April 30, 2025. Image credit: Ken Cedeno/Contributor/UPI/Bloomberg via Getty Images

The Facts

U.S. President Donald Trump's Commerce Department announced Wednesday plans to rescind former President Joe Biden's regulation known as the Framework for Artificial Intelligence Diffusion, which was designed to restrict the export of sophisticated AI chips.
New York Post
Reuters
CNN
The Biden rule, scheduled to take effect May 15, had established a three-tiered system: 17 countries plus Taiwan with unlimited access; 120 countries with capped access; and restricted countries, including China, Russia, Iran, and North Korea, completely blocked.
Wsj
Reuters
CNN
The Trump administration is considering replacing the tiered system with a global licensing regime based on government-to-government agreements, though the timeline for the new rule remains uncertain.
Wsj
Reuters
Bloomberg.com
Nvidia, a major American AI chip manufacturer, saw its stock rise 3% following the announcement, despite recently taking a $5.5 billion hit to quarterly earnings due to separate export restrictions on chip sales to China.
Wsj
Quartz
The policy shift comes ahead of Trump's planned Middle East visit, with countries like Saudi Arabia and the United Arab Emirates having lobbied for looser restrictions on their access to advanced AI chips.
Wsj
Axios

Sources Split

LEFT

CENTER

RIGHT

ESTAB
CRIT

CENTER

PRO
ESTAB

The Spin

Narrative A

This is a smart move that will bolster U.S. AI leadership. NVIDIA and industry leaders warned Biden's restrictions would harm economic interests and global competitiveness, which is where the industry was headed. By easing controls, Trump has chosen to foster innovation, which supports initiatives like TSMC's $100B Arizona investment that creates 40,000 jobs. U.S. manufacturing and AI dominance will surge now, ensuring America stays ahead in the tech race

U.S. Department of Commerce

Medium

Narrative B

Biden's AI chip export controls beyond enemies like China were critical for U.S. security and AI leadership. By capping access for 120 countries, they blocked China's smuggling through third parties and curbed proliferation to adversaries like Iran. The tiered system preserved U.S. dominance by limiting global access to advanced chips. Reversing these for nations like Saudi Arabia risks diversion and undermines America's edge.