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The United States has repealed regulations that limited the sale of AI chips by American companies to certain countries. These rules, introduced by former President Joe Biden, aimed to curb the development of artificial intelligence in other nations, allowing the U.S. to maintain a competitive edge.
American chip companies had long opposed the strict export regulations on AI chips. 'The rules would have significantly reduced or completely halted the ability of various countries to purchase advanced chips from U.S. firms like Nvidia. Many tech companies, including Nvidia and Microsoft, were against these restrictions,' said tech journalist Joe van Burik.
The Trump administration argued that the regulations stifled American innovation and undermined diplomatic relations. While the rules are being lifted, officials are still exploring ways to keep the technology out of the hands of adversaries, according to a U.S. government official.
Countries like China and Russia remain barred from purchasing advanced U.S. chips. The lifting of restrictions does not immediately allow these nations to acquire such technology, as Russia faces Western sanctions and China remains a strategic rival.
The news has already impacted the stock market, with Nvidia shares rising nearly 2% pre-market. Other chip companies like AMD and Micron also saw notable gains.
