US tightens controls on AI chips exports drawing pushback

The US is moving to impose tough new restrictions on the export of advanced computer chips and other artificial intelligence (AI) technology to dozens of countries – not just a handful of countries it has long identified as enemies.

Officials say the new rules are intended to ensure “the world’s AI runs on American rails” and keep it out of the hands of “malicious actors” who could use it to threaten the United States. .

The Biden administration said 18 allies and partners, including the UK, have been exempted from the sanctions.

The announcement, made just days before President Joe Biden leaves office, has drawn sharp criticism from some top US tech companies, who warn it will only help competitors.

“In the wrong hands, powerful AI systems have the potential to raise significant national security risks, including enabling the development of weapons of mass destruction, supporting powerful offensive cyber operations, and aiding human rights abuses such as mass surveillance.” Is.” The Commerce Department gave this information on Monday.

Chip maker Nvidia – among the companies whose business would be most affected by the plan – said that if implemented, it would “not mitigate any threat” but would only “undermine America’s global competitiveness”. And will weaken its innovation.

“By attempting to manipulate market outcomes and stifle competition – the lifeblood of innovation – the Biden administration’s new rule risks losing America’s hard-won technological edge,” the company said.

The new restrictions face a 120-day comment period before taking effect.

Exports to countries like China, Russia and Iran already face strict controls.

The new rules limit the export of certain technology to most countries around the world and require American companies to obtain authorization to sell there.

Washington’s closest allies will be exempted from the limits.

Orders under a certain level of computing power will not require a license or count towards the cap under the scheme. The Biden administration said most orders, such as those from universities or medical organizations, fall under the limit of 1,700 advanced GPUs.

The rules also outline a process for foreign governments to sign agreements in exchange for loosening sanctions.

Biden administration officials said they have discussed the rules with the incoming administration.

But Jonathan Cawley, co-head of the technology group at the Clifford Chance law firm, said he doesn’t think the rules will survive after Trump enters office, noting that one of Trump’s key campaign promises was to open up the government to AI regulation. The approach had to be changed.

“It’s absolutely certain that the Trump administration will roll back much of what Biden has said,” he said. “There is going to be a big game for innovation and development in the US and there is a loophole in the approach to AI regulation.”

The Information Technology and Innovation Foundation, a technology policy think tank, said it believes the US would be better served by a strategy focused on competition rather than “control”.

Vice President Daniel Castro said, “By pressuring other countries to choose between the United States and China, the administration risks alienating key partners and inadvertently strengthening China’s position in the global AI ecosystem. ”

“Faced with such an ultimatum, many countries may choose to provide unfettered access to AI technologies critical to their economic development and digital future”.