WASHINGTON (AP) — The Biden administration is introducing a new approach for the export of advanced computer chips used in artificial intelligence development, aiming to balance national security concerns with economic interests and international relations. However, industry executives have raised concerns about the proposed framework, suggesting it could restrict access to existing chips used in video games and limit the availability of chips for data centers and AI applications in 120 countries, including Mexico, Portugal, Israel, and Switzerland.
Commerce Secretary Gina Raimondo emphasized the importance of maintaining America’s leadership in AI and related chip technology. The rapidly advancing AI capabilities have significant implications for various sectors, including novel writing, scientific research, autonomous driving, and more, impacting economies and national security.
National security adviser Jake Sullivan highlighted the framework’s goal of ensuring that cutting-edge AI developments remain within the U.S. and its allies, rather than potentially being outsourced as seen in other industries like battery and renewable energy.
The Information Technology Industry Council cautioned against hastily implementing new rules, expressing concerns that such actions could disrupt global supply chains and disadvantage U.S. firms in the AI sector. The council called for more thorough consultations with the tech industry before finalizing the regulations.
With a 120-day comment period included in the framework, the incoming administration led by President-elect Donald Trump will have the opportunity to shape the rules governing the export of advanced computer chips. This creates a delicate balance between economic interests and national security priorities.
Government officials underscored the urgency of preserving America’s current advantage in AI over competitors like China, as this lead could quickly diminish if rivals accumulate chips and make significant progress in the field.
Ned Finkle, vice president of external affairs at Nvidia (NVDA), praised the prior Trump administration for laying the groundwork in AI development. However, he criticized the proposed framework, suggesting it could stifle innovation without effectively enhancing national security objectives.
“While disguised as an ‘anti-China’ measure, these regulations would not bolster U.S. security,” stated an official. “The proposed rules aim to regulate technology globally, including tech already prevalent in mainstream gaming PCs and consumer hardware.” Under this plan, around 20 key allies and partners would have unrestricted access to chips, while other nations would face limitations on chip imports, as outlined in a White House fact sheet. The exempt allies consist of Australia, Belgium, Canada, Denmark, Finland, France, Germany, Ireland, Italy, Japan, the Netherlands, New Zealand, Norway, Republic of Korea, Spain, Sweden, Taiwan, and the United Kingdom. Individuals outside of these allied countries could acquire up to 50,000 graphics processing units per nation. Moreover, special government agreements could potentially increase this limit to 100,000 units if their renewable energy and technological security objectives align with those of the United States. In specified nations, institutions may be granted a legal status enabling them to procure up to 320,000 advanced graphics processing units over a two-year period. However, there would be restrictions on the amount of AI computational capacity that companies and other entities could deploy abroad. Additionally, certain computer chip orders, equivalent to 1,700 advanced graphics processing units, would not require a license for importation and would not be counted against the national chip quota, in line with the established guidelines. This exemption is likely intended to facilitate orders for educational institutions and medical establishments, rather than data centers.
