President Donald Trump plans to rescind Biden-era restrictions designed to prevent advanced technology from reaching foreign adversaries—measures criticized by major tech companies. This decision could significantly affect the global distribution of critical AI chips, the companies benefiting from new AI technologies, and the United States’ leadership in artificial intelligence. Senator Ted Cruz (R-Texas) expressed support for the move during a Senate AI regulation hearing, noting his opposition to the prior rule and announcing plans to introduce legislation establishing a “regulatory AI sandbox, ” inspired by Bill Clinton’s approach during the early internet era. The hearing featured testimonies from leading tech figures including OpenAI CEO Sam Altman, AMD CEO Lisa Su, Microsoft President Brad Smith, and CoreWeave CEO Michael Intrator. Altman highlighted OpenAI’s partnership with Apple, which is building what he called the world’s largest AI training facility in Texas as part of Apple’s $500 billion US investment, which includes a Houston server production plant for AI features. Altman emphasized the need for more such investments. The Biden-era curbs, effective May 15, categorized countries into three tiers with varying AI trade regulations: low restrictions for nations like the UK, Japan, and Germany; strict limitations on China and Russia; and intermediate restrictions on other countries—raising concerns from critics like Microsoft. Microsoft’s Brad Smith argued that mid-tier countries might seek AI infrastructure from China due to these constraints, a view echoed by AI chip leader Nvidia. Tech executives advocated for increased innovation and accelerated AI adoption, with Smith stressing that AI should aim to augment human jobs rather than replace them.

The hearing also tackled the challenge of balancing rapid AI progress with necessary export controls to prevent technology diversion to adversaries while addressing ethical concerns such as chatbot misinformation, copyright issues, and protecting children from AI harms. A recent report by nonprofit Common Sense Media warned of “unacceptable risks” AI poses to minors, following a lawsuit related to a teenager’s suicide after interacting with a chatbot. Altman acknowledged these issues and offered OpenAI’s willingness to collaborate on safeguarding young users. The Trump administration has favored less restrictive AI regulation, with Vice President JD Vance warning that excessive rules could cripple the emerging AI sector. Trump continues to push for US leadership in AI and technology manufacturing, citing expansions by companies like TSMC and Apple as key achievements. The hearing coincided with imminent semiconductor tariffs, with Trump indicating adjustments to exemptions for electronics as the administration reassesses the supply chain. The US-China AI competition intensified earlier in the year with Chinese startup DeepSeek’s affordable yet advanced AI model, which challenged assumptions about the cost of competitive AI technology. Brad Smith stated that global adoption of technology will be the decisive factor in the AI race between the US and China.