On May 13, 2025, the Department of Commerce, Bureau of Industry and Security (BIS) announced that it will rescind the January 15, 2025 Artificial Intelligence (AI) Diffusion Rule and issued guidance on export controls for AI chips.
Formal rescission of the AI Diffusion Rule as well as a replacement rule are expected in future Federal Register Notices.
The May 13, 2025 notice informs industry that compliance requirements that were scheduled to take effect on May 15 will not be enforced.
In addition, BIS issued guidance documents on the following related topics:
- The risks of using PRC advanced computing ICs, including specific Huawei Ascend chips.
- The potential consequences of allowing U.S. AI chips to be used for training and inference of Chinese AI models.
- How U.S. companies can protect supply chains against diversion tactics.
The BIS press release includes additional detail and links to the guidance documents, which in turn provide additional detail including risks, red flags, and best practices.