AI Diffusion Confusion?

Mike and Brent re-boot a prior recording overtaken by events, specifically the Sunday, May 31, 2026, guidance issued by BIS to global data centers and the June 12, 2026, “is-informed” letter by Commerce Secretary Howard Lutnick that caused an AI model company to take down its latest models.

Mike and Brent first update listeners on pending legislation in the U.S. Congress (01:37). They then revisit last year’s May 13, 2025, announced intent by BIS to rescind the Biden-era “AI Diffusion Rule” (06:44), discuss questions around whether that rescission actually happened and, in any event, what was the status of U.S. export controls as a result (10:59), and then break down the May 31, 2025, guidance from BIS (15:53) including the opportunities and limitations of what reads like a “General Prohibition 10 Savings Clause” in the penultimate paragraph (19:43). They next discuss the Friday, June 12, 2026, “is-informed” letter issued by the Secretary of Commerce and its implications for industry (23:58). Then they conclude with a “Gray Rhino” edition of Brent’s “Managing Up” segment (26:18).

Contact Brent: [email protected]

More about Brent: https://www.redflagsrising.com/founder

Connect with Brent on LinkedIn: https://www.linkedin.com/in/brent-carlson-41ba692/

Contact Mike: [email protected]

More about Mike: https://www.morganlewis.com/bios/michaelhuneke

Connect with Mike on LinkedIn: https://www.linkedin.com/in/mhuneke/

The BIS Guidance from Sunday, May 31, 2026: https://www.bis.gov/media/documents/bis-guidance-may-31-2026.pdf

Michele Wucker, The Gray Rhino: How to Recognize and Act on the Obvious Dangers We Ignore (2016): https://www.amazon.com/Gray-Rhino-Recognize-Obvious-Dangers/dp/125005382X