US government withdraws draft rule chip rules and why it is big relief for AMD and Nvidia

The United States Department of Commerce has withdrawn a proposed rule on artificial intelligence (AI) chips. The proposed rule would’ve restricted American chip companies like Nvidia, AMD and Intel from exporting chips without US approval. According to an update posted on the Office of Management and Budget website (seen by Bloomberg), the interagency review of the proposed regulation has concluded, and the measure will not move forward.

The draft rule, which has now been withdrawn, had proposed tighter oversight of global shipments of advanced AI chips produced by companies such as Nvidia and AMD.