One effect of the change will be its likely benefits for NVIDIA; shares of the company’s stock rose 3% after the news about the AI chips export rule change was announced.

The regulations, which were to go into effect May 15, were designed to limit AI advancement in certain nations – “non-trusted actors” – with an emphasis on ensuring those chips don’t get to China. Called “AI Diffusion,” the regulation was controversial.

The Trump administration plans to scrap the Biden-era AI Diffusion Rule that restricted AI chip exports to most countries, replacing it with a simpler, negotiation-driven policy that maintains tough controls on China but opens doors for bilateral deals.