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On Monday, the U.S. government announced plans to tighten restrictions on artificial intelligence chip and technology exports, aiming to concentrate advanced computing capabilities within the U.S. and its allies while intensifying efforts to block access for China.
The new regulations will limit the number of AI chips exported to most countries. They will also grant unrestricted access to U.S. AI technology for America’s closest allies and uphold export bans on China, Russia, Iran, and North Korea.
In the final days of President Joe Biden’s administration, the U.S. unveiled extensive new regulations extending beyond China, designed to maintain its global dominance in AI by exerting control over its distribution worldwide.
“The U.S. leads AI now – both AI development and AI chip design, and it’s critical that we keep it that way,” said Gina Raimondo, the U.S. Secretary of Commerce.
Other Regulations Relating to Advanced Chips
The U.S. also announced sweeping regulations to maintain dominance in AI and limit China’s access to advanced chips that could enhance its military capabilities. These measures build on a four-year effort to restrict exports of high-performance GPUs and technology critical to AI development.
The new rules introduce global licensing requirements for advanced AI chips, create a three-tier system for country-specific restrictions, and tighten controls on “model weights” for advanced AI models. Close U.S. allies, including Japan, South Korea, and the Netherlands, are exempt, while nations like Singapore, Israel, and Saudi Arabia face quotas. Arms-embargoed countries, including China, Russia, Iran, and North Korea, remain blocked entirely.
Major U.S. cloud providers, including Microsoft, Google, and Amazon, will be eligible for global authorizations to build data centers but must adhere to strict usage limits and compliance requirements. The regulation also caps the share of AI computing power that companies can deploy outside the U.S., emphasizing national security and human rights safeguards.
While Nvidia and other industry leaders have criticized the rules as excessive, the Biden administration defends them as necessary to counter China’s advancements and ensure responsible AI development. The regulation, effective 120 days from publication, leaves enforcement to the incoming Trump administration, which shares similar views on the competitive threat posed by China.
AI’s rapid evolution presents opportunities for progress in fields like healthcare and education but also raises risks tied to weaponization, surveillance, and cybersecurity. National Security Adviser Jake Sullivan emphasized the need for vigilance to address AI’s transformative potential on the economy and security.
