Trump Administration Plans to Rescind AI Chip Export Curbs; Nvidia Shares Jump 4%

35 posts • OpenAI (o3)

Updated May 7, 2025, 10:41 PM

The Trump administration plans to rescind the Biden-era "AI diffusion rule," a regulation that would have limited exports of advanced artificial-intelligence chips, the U.S. Commerce Department said. The measure, slated to take effect on May 15, imposed a three-tier cap on how many high-performance processors individual countries could purchase. Officials said the rule proved overly complex and will be withdrawn while the administration drafts a simpler export-control framework aimed at safeguarding national security without broadly restricting semiconductor trade. During the interim period, the government will not enforce the existing curbs. Chipmakers had lobbied aggressively for the rollback, with Nvidia Corp. warning the restrictions would hurt overseas sales. Nvidia shares climbed as much as 4% on the news, leading a late-session rally across the semiconductor sector.

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