The US Commerce Department has withdrawn a proposed rule on artificial intelligence (AI) chip exports, signalling a shift in the Trump administration’s approach to safeguarding American leadership in AI technology.
According to Reuters, the draft regulation intended to replace a Biden-era rule introduced in January 2025, had been circulated to federal agencies for review late last month.
A notice for the rule, titled “AI Action Plan Implementation,” appeared on the Office of Information and Regulatory Affairs (OIRA) website on Feb 26 but was removed on March 14.
A US official said the proposal had always remained a draft.
“This supposed rule was always a draft and remains a draft. All discussions previously reported were preliminary,” the official said.
According to documents seen by Reuters, the draft plan considered requiring foreign governments to invest in US data centres or provide security guarantees to qualify for large-scale chip exports.
Countries seeking 200,000 AI chips or more could have been required to make investments in US infrastructure, while requests for up to 100,000 chips would require government-to-government assurances.
The proposal marked a departure from the Biden administration’s tiered system, which divided countries into allies with unlimited access, nations with restricted access and countries of concern that were blocked from receiving advanced chips.
The Biden rule was part of Washington’s broader strategy to restrict China’s access to advanced semiconductors while maintaining US leadership in AI technology.
A former US official said the withdrawal likely reflects internal differences within the Trump administration over how to balance national security concerns with global technology competition.
The Commerce Department said earlier it remained committed to promoting secure exports of US technology, while noting the Biden-era AI diffusion rule would not be reinstated.
