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You are at:Home » Biden administration proposes new rules for exporting AI chips
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Biden administration proposes new rules for exporting AI chips

Adnan MaharBy Adnan MaharJanuary 13, 2025No Comments7 Mins Read0 Views
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WASHINGTON (AP) — The Biden administration is proposing a new framework for U.S. exports. advanced computer chip used for development artificial intelligencean attempt to balance national security concerns about the technology with the economic interests of producers and other countries.

But Monday’s proposed framework also raised concerns from chip industry executives and European Union officials about export restrictions that would affect 120 countries. Mexico, Portugal, Israel and Switzerland are among the countries that may have limited access to AI data centers and chips needed for products, but much of the underlying focus is on China. .

“I think the risks are enormous if China, rather than the United States, decides the future of AI on the planet,” White House National Security Adviser Jake Sullivan said Monday.

With a week left until President-elect Donald Trump’s inauguration, Biden officials say it’s up to him to stick with or drop an approach that Sullivan said “shouldn’t be a partisan issue at all.” It was revealed that.

Secretary of Commerce Gina Raimondo He said it is “critical” to maintain America’s leadership in the development of AI and AI-related computer chips. Rapidly evolving AI technology will allow computers to create novels, make breakthroughs in scientific research, automate driving, and facilitate a host of other changes that could reshape economies and warfare. You can.

Raimondo said the framework is “designed to protect cutting-edge AI technology and keep it out of the hands of foreign adversaries, while also enabling widespread adoption and sharing of benefits with partner countries.” ” he said.

The Biden administration had already restricted exports to hostile countries; such as China and Russia, some of which There was a loophole in the control And the new rules would place restrictions on a broader group of countries. Raymond James analyst Ed Mills said data centers built in the Middle East and Southeast Asia are of particular concern to U.S. authorities.

“Chinese companies are using these data centers to build AI models using technology that cannot be imported into China,” Mills said.

The Information Technology Industry Council, a high-tech trade group, wrote to Raimondo last week that the new rules, rushed by the Democratic administration, could disrupt global supply chains and put U.S. companies at a disadvantage. I warned you. Another group, the Semiconductor Industry Association, said Monday it was disappointed that the policy was “rushed out” ahead of the presidential transition.

“The new rules will cause unintended and lasting damage to the U.S. economy and the global competitiveness of semiconductors and AI by ceding strategic markets to competitors,” said John Neufer, president and CEO of SIA. There is a risk of giving.”

One industry executive familiar with the framework, who requested anonymity to discuss the framework, said the proposed restrictions would limit access to chips already in use. video gameDespite claims to the contrary by the government. The executive said it would also limit companies’ ability to build data centers overseas.

Among the companies expected to be affected is China-based data center developer GDS Holdings. The company’s stock price fell more than 18% on Monday.

This framework includes a 120-day comment period. next republican administration It could ultimately decide on rules for the overseas sale of advanced computer chips, primarily designed by California companies such as Nvidia and AMD.

Officials said they felt they needed to act quickly to maintain the U.S.’s likely six- to 18-month lead in AI over rivals such as China, but if competitors This head start could easily be lost if the company were able to stockpile chips. And bring more profits.

Ned Finkle, Nvidia’s vice president of external affairs, said in a statement that the previous Trump administration helped lay the groundwork for AI development, and that the proposed framework would require innovation to meet stated national security goals. He said it would have a negative impact on the

“Though disguised as ‘anti-China’ measures, these rules do not strengthen U.S. national security,” he said. “The new rules will govern technology around the world, including technology already widely used in mainstream gaming PCs and consumer hardware.”

Under the framework, about 20 major allies and partners would face no restrictions on access to chips, while other countries would face restrictions on what chips they could import, according to a fact sheet provided by the White House. Become.

Unrestricted allies include Australia, Belgium, Canada, Denmark, Finland, France, Germany, Ireland, Italy, Japan, Netherlands, New Zealand, Norway, South Korea, Spain, Sweden, Taiwan, and the United Kingdom. But restrictions on other countries in the European Union were opposed on Monday by EU officials who said the sale of advanced AI chips to EU member states was an economic opportunity for the United States and “not a security risk.” exclaimed.

Sullivan said this framework will ensure that the most cutting-edge aspects of AI are developed within the United States and in collaboration with our closest allies, rather than being exported overseas, such as in the battery and renewable energy sectors. He emphasized.

Associated Press correspondent Julie Walker reports that President Biden’s administration is proposing new rules for the export of AI chips, sparking an industry backlash.

Users outside of these close allies can purchase up to 50,000 graphics processing units per country. There could also be an intergovernmental agreement that could raise the cap to 100,000 if renewable energy and technology security goals align with those of the United States.

Educational institutions in certain countries can also apply for legal status to purchase up to 320,000 advanced graphics processing units over two years. Still, there will be limits to how much AI computing power companies and other institutions can deploy overseas.

Additionally, orders for computer chips equivalent to 1,700 advanced graphics processing units will no longer require a license to import or count toward the national chip cap, among other criteria set out in the framework. . The 1,700 graphics processing unit exception is likely to help fulfill orders for universities and medical institutions, as opposed to data centers.

The new rules will not hinder AI-driven data center expansion plans by major cloud computing providers such as Amazon, Google, and Microsoft, as trusted companies seeking large clusters of advanced AI chips will be exempt. It is expected.

“We are confident that we can fully comply with the rule’s high security standards and meet the technology needs of the countries and customers around the world who rely on us,” Microsoft President Brad Smith said in a statement Monday. “

Microsoft came under bipartisan scrutiny last year after it was announced It will invest $1.5 billion in technology companies based in the United Arab Emirates and overseen by the country’s powerful national security adviser.

With Biden leaving the final decision to Trump, the incoming administration will make clear just how difficult it will be to counter China’s AI ambitions.

Some Trump supporters, such as Sen. Ted Cruz, have already criticized Biden’s approach as coercive, but Mills said it is an extension of the broader U.S.-China trade policy that Trump himself initiated eight years ago. Said to be suitable.

“This actually started under the Trump administration and continued in the Biden administration, and the Biden team moved forward with a lot of things, but some things weren’t quite completed,” Mills said. “It’s as if they dropped a hot potato into the Trump administration’s lap and are daring them to take it back.”

——

O’Brien reported from Providence, Rhode Island.



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Adnan Mahar
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Adnan is a passionate doctor from Pakistan with a keen interest in exploring the world of politics, sports, and international affairs. As an avid reader and lifelong learner, he is deeply committed to sharing insights, perspectives, and thought-provoking ideas. His journey combines a love for knowledge with an analytical approach to current events, aiming to inspire meaningful conversations and broaden understanding across a wide range of topics.

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