US Rescinds AI Chip Export Curbs

The US Department of Commerce eliminated the Biden-era rule which would have restricted AI chip exports to more than 100 countries through federal approval until Thursday after receiving opposition from the tech industry and its allies. The rule attempted to maintain national security equilibrium with economic interests yet received opposition from Nvidia and AMD because they worried about losing their markets to China. Microsoft’s Brad Smith expressed his opposition to the rule because it would damage trust relationships with 120 nations. The decision supports President Trump's Middle East tour which includes Saudi Arabia where a chip access agreement is currently being finalized. Undersecretary Jeffery Kessler from Commerce announced that the administration will develop a new rule which will support AI development among allies while blocking China and Russia from accessing it. The European Commission supported this change because they believed the rule would have created difficulties for US diplomatic relations. The rescinded framework established restrictive tiers for countries which threatened to force Middle Eastern nations to depend on Chinese technology. The news caused Nvidia stock prices to increase by 5% and AMD stock prices to rise 1.9% because of market optimism. The decision supports Trump's trade approach through tariff agreements yet the specifics of the upcoming rule remain unknown which forces tech companies to handle security and market access challenges.