BIS Rescinds AI Diffusion Rule And Issues Guidance On Advanced Computing Integrated Circuits

On May 12, 2025, the U.S. Department of Commerce's Bureau of Industry and Security (BIS) announced the rescission of the previously issued Framework for Artificial Intelligence (AI) Diffusion Rule. The following day, May 13, 2025, BIS issued two guidance documents and one policy statement on advanced computing integrated circuits (IC).

BIS Rescinds AI Diffusion Rule

The AI Diffusion Rule was issued by the previous Administration on January 15, 2025, and its compliance requirements were set to come into effect on May 15, 2025. As detailed in our prior alert, the Rule – which introduced new controls on advanced closed-weight AI models, expanded controls on advanced computing technology and ICs, and created a new authorization process for building data centers abroad – received considerable pushback from U.S. allies and domestic AI industry leaders, who argued that the Rule could weaken global competitiveness and undermine AI innovation. In its announcement, BIS