Washington Pulls the Plug on Its Own AI Chip Export Blueprint as Internal Disagreements Stall Policy

News Summary

The U.S. Department of Commerce abruptly withdrew its planned rule on AI chip exports on Friday (Eastern Time, March 13, 2026), according to an update posted on the Office of Management and Budget's official government website. The interagency review process was recorded as concluded and the measure marked as withdrawn — with no public explanation provided. A Commerce Department spokesperson did not respond to media requests for comment.

What the Rule Would Have Done

The draft regulation, formally titled "AI Action Plan Implementation," was posted to the Office of Information and Regulatory Affairs website on February 26 "pending review." It was designed to govern global access to AI chips and had been circulated to other agencies for feedback in late February. According to a document reviewed by Reuters, the plan would have required foreign countries to make investments in U.S. data centers or provide security guarantees as a condition for receiving exports of 200,000 or more chips — a sweeping and highly conditional framework that critics described as burdensome.

A Sharp Break From the Biden Blueprint

The withdrawn draft represented a significant departure from the Biden administration's approach. The prior framework, known as the "AI Diffusion Rule," divided the world into three tiers and largely exempted close U.S. allies from chip export restrictions while tightening controls over adversarial nations. The Trump administration formally rescinded that rule last spring — less than a week before it was set to take effect — after characterizing it as "burdensome, overreaching, and disastrous."

In a March 5 statement posted to X (formerly Twitter), the Commerce Department reaffirmed it would not revive the Biden-era policy, signaling it was working on a replacement. However, people familiar with the circulated draft told Reuters that the new proposal also appeared quite burdensome in its own right — raising questions about internal alignment within the administration.

Internal Divisions Driving the Reversal

A former government official told Reuters on Friday that the withdrawal likely reflects conflicting views inside the Trump administration on how best to achieve global AI dominance while simultaneously addressing national security concerns. The tension is significant: on one side, there are national security hawks seeking tight controls over where the most advanced chips end up; on the other, commerce and industry advocates who fear that overly restrictive rules will push foreign buyers toward non-U.S. chip suppliers — ultimately undermining American leadership in the global AI race.

Industry Impact and Ongoing Uncertainty

The policy vacuum leaves chipmakers like Nvidia and AMD — whose advanced AI accelerators are at the center of this debate — in an uncertain regulatory environment. Companies and foreign governments seeking to plan large-scale AI infrastructure projects have no clear guidance on what approvals they may need or when a new rule will be finalized.

The Bloomberg report confirmed that the OMB website had been updated to reflect that the review had ended and the measure was pulled, without further details. With no new rule in place and the Biden framework already rescinded, the U.S. currently lacks a formal global export control structure for AI chips — leaving a regulatory gap that affects partners and adversaries alike.

What Comes Next

The Commerce Department has signaled that new rules are forthcoming, but the timeline remains unclear. Analysts and industry watchers are closely monitoring whether the administration will produce a streamlined, deal-based framework — possibly requiring bilateral agreements with partner nations — or attempt another broad regulatory approach. Until then, exporters are advised to maintain robust compliance screening for end-use and end-user risk across all international shipments.