### U.S. Commerce Department Rescinds AI Export Rule Amid Criticism

In response to widespread criticism from the tech industry and global partners, the U.S. Department of Commerce has withdrawn a looming regulation that would have restricted the export of artificial intelligence (AI) chips without federal approval. The rule, set to take effect on Thursday, had been criticized for potentially hindering American innovation and imposing onerous regulatory burdens on companies.

The now-rescinded rule was introduced by President Joe Biden in the final days of his administration. It aimed to balance national security interests with the economic advantages of AI technology exporters. Existing U.S. export restrictions already limit sales to adversarial nations like China and Russia, but the intended rule sought to extend these limits to over 100 countries, including some Middle Eastern nations.

Tech giants such as Nvidia and Advanced Micro Devices, along with several nations, were particularly vocal against the Biden-era regulation. They warned that such measures might drive countries to seek AI technology from China rather than the U.S. Brad Smith, Microsoft's president, highlighted this concern during a U.S. Senate hearing, stating that the rule "sent a message to 120 nations that they couldn't necessarily count on us to provide the AI they want and need."

Commerce Undersecretary Jeffery Kessler announced that President Donald Trump’s administration would work on formulating a new rule to ensure AI technology remains accessible to "trusted foreign countries" while keeping it out of the hands of adversaries. Although a replacement rule is anticipated, specific details have not yet been disclosed.

The European Commission expressed approval of the decision to revoke the rule. Thomas Regnier, the Commission's spokesperson, argued that the Biden-era rule would have strained U.S. diplomatic relations by relegating numerous countries to a lower-tier status. Regnier emphasized that European Union nations should have unfettered access to advanced U.S. AI chips, given the close security cooperation and significant economic ties between the U.S. and the EU.