On May 13, 2025, the Commerce Department's Bureau of Industry and Security formally rescinded the Biden-era AI Diffusion interim final rule and replaced it with three new guidance documents. The most consequential action effectively prohibits all persons globally, U.S. and non-U.S., from using, selling, financing, or servicing Huawei's Ascend 910B/C/D chips and comparable advanced Chinese AI chips, on the basis that these ICs likely required but did not receive prior BIS authorization; the prohibition extends via the Foreign Direct Product rule with no U.S. nexus required beyond that assertion. BIS also codified catch-all end-use controls on training AI models for Chinese, Russian, or arms-embargoed-country entities and issued detailed red-flag and diligence checklists for chip exporters, with non-compliance treated as an aggravating enforcement factor. For financial institutions, this materially tightens compliance obligations around financing, leasing, or providing services to data centers and IaaS providers with PRC-linked customer bases, and raises counterparty risk across semiconductor and AI infrastructure lending books. Also reported by: https://www.datacenterknowledge.com/data-center-chips/ai-chip-export-controls-a-new-challenge-for-data-center-operators
374 other tracked developments touching the same claims.