Trump administration overturns Biden's AI chip export limits

In early 2025, the U.S. Department of Commerce made a significant change by rescinding a Biden-era rule that aimed to impose strict limits on the export of artificial intelligence (AI) chips to certain international markets. This decision was largely influenced by complaints from the technology sector, including major companies like Nvidia and Advanced Micro Devices, as well as concerns expressed by other nations. The Biden rule, which was set to take effect shortly, was viewed as a barrier to innovation and could have hindered the ability of U.S. chipmakers to compete globally, particularly against countries like China. By rescinding these restrictions, the Trump administration signaled a shift in strategy, emphasizing the importance of maintaining relationships with key allies in the Middle East and beyond. As part of this strategic move, Saudi Arabia secured substantial semiconductor orders, including advanced AI chips from Nvidia and cooperative agreements with AMD and Amazon Web Services to develop local technology talent. This alignment with Saudi Arabia highlights the U.S. goal of fostering international cooperation while ensuring that sensitive technologies do not fall into the hands of adversaries. U.S. officials articulated their intention to develop a new export framework that prioritizes partnerships with 'trusted foreign countries,' signaling a focused effort to maintain technological leadership. The changes were welcomed by the European Commission, suggesting that greater accessibility to U.S. chip technology could enhance economic opportunities and security cooperation among allies. Critics pointed to the need for safeguards that prevent sensitive AI technologies from being exploited by adversarial states. In sum, this policy shift reflects a balance between economic interests and national security considerations, underscoring the complex nature of global technology trade in modern times.