The Trump administration plans to scrap and revise a Biden-era regulation that restricted exports of advanced AI chips, aiming to simplify the rules and boost U.S. innovation, according to a Commerce Department spokeswoman. 

“The Biden AI rule is overly complex, overly bureaucratic, and would stymie American innovation. We will be replacing it with a much simpler rule that unleashes American innovation and ensures American AI dominance,” the Commerce spokeswoman said.

President Joe Biden introduced the “AI diffusion rule” in the closing days of his administration, with implementation scheduled for May 15. The rule categorized countries into three tiers based on their access to AI chips.

While Tier 1 nations like Taiwan faced no restrictions, Tier 2 countries had capped access, and Tier 3, including China, Iran, and Russia, were blocked entirely.

The Trump administration argues the tiered system is “unworkable” and intends to replace it with a more streamlined approach.

“The Biden plan would have handed over key markets to China. We should want foreign countries, particularly our allies, to buy American. I vocally opposed this rule for months, and indeed, the ranking member and I together urged the Biden administration not to adopt it, and I’m very pleased that President Trump has now confirmed he plans to rescind it,” Sen. Ted Cruz, R-Texas, chairman of the Senate Committee on Commerce, Science, and Transportation, reportedly said during a hearing to discuss AI regulation.