The U.S. Commerce Department has withdrawn a proposed regulation on artificial intelligence (AI) chip exports, signaling a change in the Trump administration’s policy toward safeguarding America’s leadership in AI technology.
According to Reuters, the draft regulation, which was meant to replace a Biden-era rule from January 2025, had been sent to federal agencies for review late last month. The rule, titled “AI Action Plan Implementation,” was posted on the Office of Information and Regulatory Affairs (OIRA) website on February 26 but was taken down on March 14.
The proposed regulation was regarded as President Donald Trump’s most significant effort to establish a framework for controlling the export of advanced AI processors.
Bloomberg previously reported that the proposal would have granted a central role to the Commerce Department’s licensing office in reviewing exports of advanced AI chips from companies such as Nvidia.
Under the plan, export approvals would have been determined by the government on a case‑by‑case basis.
One provision in the draft suggested tying chip exports to commitments from foreign governments. Nations seeking more than 200,000 AI chips might have been required to make investments in the United States, while requests for up to 100,000 chips would have needed formal guarantees from their governments.
However, reports indicate that officials have said the Trump administration does not intend to reinstate the earlier framework, calling it too complex. The Commerce Department emphasized that it continues to prioritize secure exports of U.S. technology while promoting America’s leadership in AI globally.
The decision to withdraw the draft rule also highlights internal discussions within the administration over how to balance national security with expanding the international presence of U.S. AI technology.
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