A US Commerce Department official has flagged upcoming regulatory action targeting chips and artificial intelligence. On May 13, 2025, the Bureau of Industry and Security rescinded the Biden administration’s AI Diffusion Rule, which had been published in January 2025. The Trump administration replaced it with new guidance warning that if hardware ends up powering PRC-linked artificial intelligence, companies could face criminal enforcement. In January 2026, BIS adjusted its licensing approach for certain AI chips from a “presumption of denial” to “case-by-case review,” introducing additional certification requirements for exporters. By March 2026, the Commerce Department pulled another planned rule on global AI chip exports. BIS has continued adding People’s Republic of China entities to its Entity List and issuing warnings against third-country sales to Chinese subsidiaries. For companies like Nvidia and AMD, the shift to case-by-case review introduces delays, legal costs, and operational uncertainty. Additional certification requirements add overhead, and the continued expansion of the Entity List forces chipmakers to audit customer lists and potentially write off revenue.