The Trump administration has abandoned its plan for restricting exports of AI chips, according to a report by the Chosun Ilbo. The decision ends a regulatory effort that would have placed new limits on the overseas shipment of advanced artificial intelligence accelerators.

The export plan targeted the high-end semiconductors that power large AI models, products dominated by U.S. manufacturers such as Nvidia. Its withdrawal removes a framework that chipmakers and foreign governments had criticized as unworkable and commercially damaging.

The rule had been drafted during the previous administration. It grouped destination countries into tiers, with access to advanced AI chips determined by each country's tier. Industry executives and trade groups argued the structure would push foreign buyers toward non-U.S. suppliers and complicate compliance for chip producers.

By dropping the plan, the administration clears the way for continued sales of top-tier AI accelerators to markets that the framework would have restricted. The move affects the global supply chain for AI training and inference hardware, where U.S.-designed GPUs hold the leading share.

Chip exporters had faced uncertainty while the rule remained pending. Its cancellation reduces that regulatory ambiguity for manufacturers planning shipment volumes and for data center operators abroad budgeting for AI infrastructure buildouts.

The decision signals a shift in Washington's approach to controlling the spread of AI compute. Instead of sweeping export categories, policy attention is expected to move toward narrower measures targeting specific end uses and specific actors.

For chip suppliers, the immediate commercial effect is straightforward: advanced AI accelerators can continue to ship under existing export control rules rather than under the abandoned tiered framework. Buyers in countries that faced reduced access quotas now retain standard licensing paths.

The Chosun Ilbo report did not specify a timeline for any formal deregulatory filing or a replacement policy. The administration has not yet published detailed guidance on how it will handle future export requests for AI chips at the highest performance tiers.

Market participants will watch upcoming actions from the Commerce Department for confirmation of the policy reversal and for any successor rules. The stakes are substantial: global spending on AI accelerators runs to tens of billions of dollars annually, and export terms directly determine which suppliers and which countries capture that spending.

The abandonment of the plan marks the second major reversal in U.S. AI chip trade policy within a year. Suppliers, foreign governments and cloud providers have repeatedly asked for stable, predictable rules. This decision removes one source of instability but leaves open questions about the long-term structure of U.S. controls on AI hardware exports.