Overview

• The Trump administration has officially scrapped the Biden-era 'Framework for Artificial Intelligence Diffusion' set to take effect on May 15, citing its complexity and potential to stifle innovation.
• The Biden framework divided countries into three tiers with varying AI chip export restrictions, including full bans for adversaries like China and Russia.
• The US Commerce Department announced plans to replace the tiered system with a streamlined, bilateral approach, though specific details remain undisclosed.
• Nvidia, a major AI chip manufacturer, welcomed the rollback, with its stock closing up 3.1% following the announcement.
• The policy shift reflects broader efforts to balance national security, trade leverage, and US technological leadership in the global AI market.