BIS Issues New Rule Expanding Controls On Export, Reexport And Transfer Of Advanced Computing Chips And Artificial Intelligence Model Weights

On January 13, 2025, the Bureau of Industry and Security ("BIS") of the U.S. Department of Commerce issued an interim final rule on a Framework for Artificial Intelligence Diffusion (the "AI Diffusion Rule") aimed at expanding the existing U.S. export control framework to address the growing threat to U.S. national security and foreign policy that is presented by diffusion of advanced computing integrated circuits (or chips) and advanced artificial intelligence ("AI") models. The AI Diffusion Rule: (a) adds a new control to the Export Administration Regulations ("EAR") for advanced AI model weights, which are numerical parameters critical to advanced AI models; (b) revises existing controls on advanced computing chips; and (c) expands the scope of the validated end-user authorization for data centers.