The U.S. Department of Commerce (DOC) announced it will rescind the Artificial Intelligence (AI) Diffusion Rule, originally issued on January 15, 2025, and scheduled to take effect on May 15, 2025.

According to the DOC, the Bureau of Industry and Security (BIS) will soon publish a Federal Register Notice to formalize the withdrawal and introduce a replacement rule.

In conjunction with this announcement, BIS highlighted recently released guidance aimed at reinforcing export controls related to AI chips. This guidance outlines risks associated with sourcing advanced chips from China, examines the potential consequences of U.S.-origin AI chips being used to train Chinese AI models, and offers recommendations for securing supply chains against diversion tactics.

The DOC’s press release and links to additional guidance can be found here:
https://www.bis.gov/press-release/department-commerce-rescinds-biden-era-artificial-intelligence-diffusion-rule-strengthens-chip-related