Overview

• The Trump administration confirmed it will rescind the Biden-era AI diffusion rule, which categorized countries into three tiers for AI chip export restrictions.
• Existing export controls will remain in place while the Commerce Department develops a streamlined replacement policy.
• The Biden rule was criticized as overly bureaucratic and potentially harmful to U.S. innovation, prompting calls for a simpler global licensing approach.
• Nvidia's stock rose 3% following the announcement, reflecting market optimism about potential increased access to global markets.
• Major chipmakers, including Nvidia and AMD, had warned of significant financial impacts under the Biden rule, with AMD projecting a $1.5 billion revenue hit and Nvidia expecting a $5.5 billion Q1 charge.