WASHINGTON (AP) — The Biden administration has unveiled a new proposal for regulating the export of advanced computer chips used in artificial intelligence development. This proposal aims to address national security concerns while also considering the economic interests of chip producers and other countries.
However, industry executives in the chip sector have expressed reservations about the framework, citing potential limitations on access to existing chips for video games and restrictions on chips used in data centers and AI products in 120 countries. Countries like Mexico, Portugal, Israel, and Switzerland may face restricted access under the proposed rules.
Commerce Secretary Gina Raimondo emphasized the importance of maintaining America’s leadership in AI and AI-related chip development. The rapid advancement of AI technology has far-reaching implications, from enhancing scientific research to transforming economies and warfare. Raimondo highlighted the need to safeguard advanced AI technology from foreign adversaries while fostering collaboration with partner countries.
National security adviser Jake Sullivan stressed the importance of developing cutting-edge AI technology within the United States and its allies, rather than potentially outsourcing it. However, the Information Technology Industry Council cautioned against hastily implementing new rules, warning of potential risks to U.S. global leadership in AI and advocating for more extensive consultation with the tech industry.
Despite government assurances, some industry insiders believe the proposed restrictions could impact access to chips for video games and limit the construction of data centers overseas. With a 120-day comment period in place, the incoming administration of President-elect Donald Trump may have a role in finalizing the regulations on the export of advanced computer chips.
Officials underscored the urgency of acting swiftly to maintain America’s competitive edge in AI over rivals like China. The proposed framework aims to prevent competitors from stockpiling chips and closing the technological gap. However, some industry representatives expressed concerns that the framework could stifle innovation without effectively enhancing national security goals.
Ned Finkle, vice president of external affairs at Nvidia, acknowledged the Trump administration’s contribution to AI development and raised concerns about the potential impact of the proposed framework on innovation.
“While cloaked in the guise of an ‘anti-China’ measure, these rules would do nothing to enhance U.S. security,” he said. “The new rules would control technology worldwide, including technology that is already widely available in mainstream gaming PCs and consumer hardware.”
Under the framework, roughly 20 key allies and partners would face no restrictions on accessing chips, but other countries would face caps on the chips they could import, according to a fact sheet provided by the White House.
The allies without restrictions include 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. Users outside of these close allies could purchase up to 50,000 graphics processing units per country. There would also be government-to-government deals which could bump up the cap to 100,000 if their renewable energy and technological security goals are aligned with the United States.
Institutions in certain countries could also apply for a legal status that would let them purchase up to 320,000 advanced graphics processing units over two years. Still, there would be limits as to how much AI computational capacity could be placed abroad by companies and other institutions.
Also, computer chip orders equivalent to 1,700 advanced graphics processing units would not need a license to import or count against the national chip cap, among the other standards set by the framework. The exception for the 1,700 graphics processing units would likely help to meet the orders for universities and medical institutions, as opposed to data centers.
