[The Biden Administration Issues New Restrictions on Export of US-Developed AI Chips
The Biden administration has issued new restrictions on the export of US-developed computer chips that power artificial intelligence (AI) systems, in an effort to prevent rivals like China from accessing the advanced technology. The fresh curbs are the culmination of years of attempts to block China from gaining ground in its military and industrial leadership efforts, and are expected to further inflame tensions between Washington and Beijing ahead of the inauguration of President-elect Donald Trump next week.
The global export framework creates three tiers of countries for exports of advanced AI chips and technology. The first tier includes partners and allies like Australia, Japan, South Korea, and Taiwan, with no new restrictions on the sale of these advanced chips. The second tier, which includes China and Russia, which are already blocked from buying advanced chips, will be subject to restrictions on the sale of the most powerful “closed” AI models, whose underlying architectures are not released to the public.
The biggest changes will be faced by the third group, which comprises most of the world, which will have new caps on the amount of computing power that can be bought, although they will be able to apply for additional quotas subject to certain security requirements. This change is intended to prevent China from accessing AI chips through third countries, particularly in the Middle East.
Senior Biden administration officials have acknowledged that the new rules will have a significant impact, but stressed that they are necessary to safeguard the most advanced AI technology and ensure that it stays out of the hands of foreign adversaries. The restrictions are being announced against a global backdrop of soaring demand for AI chips made by companies like Nvidia, AMD, and Intel.
Tech giants like Nvidia and Oracle have blasted the new restrictions, accusing the administration of bureaucratic overreach and saying they will harm US competitiveness. The Semiconductor Industry Association has also expressed deep concerns about the potential regulation, which it says was developed without industry input and could significantly undercut US leadership and competitiveness in semiconductor technology and advanced AI systems.
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