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Why the Biden administration is proposing new rules for exporting AI chips

Jan 13, 2025 - fastcompany.com
The Biden administration has proposed a new framework for exporting advanced computer chips used in artificial intelligence, aiming to balance national security concerns with economic interests. The framework seeks to preserve U.S. leadership in AI by restricting access to these chips in 120 countries, including Mexico, Portugal, Israel, and Switzerland, while allowing unrestricted access for about 20 key allies. The proposal has raised concerns among chip industry executives who argue that it could limit access to existing chips used for video games and restrict the development of data centers abroad. The Information Technology Industry Council has warned that the rules could fragment global supply chains and disadvantage U.S. companies, calling for more consultation with the tech industry.

The framework includes a 120-day comment period, allowing the incoming Trump administration to potentially shape the final rules. The proposal aims to maintain America's perceived six- to 18-month advantage in AI over rivals like China. Critics, including Nvidia's Ned Finkle, argue that the framework could hinder innovation without enhancing U.S. security. The framework allows for certain exceptions, such as permitting up to 50,000 graphics processing units per country for non-allied nations, with potential increases through government-to-government deals. Additionally, orders equivalent to 1,700 advanced graphics processing units would not require a license, benefiting universities and medical institutions.

Key takeaways:

  • The Biden administration is proposing a new framework for exporting advanced computer chips used in AI, aiming to balance national security with economic interests.
  • Concerns have been raised by chip industry executives that the rules could limit access to existing chips for video games and restrict AI product chips in 120 countries.
  • The framework includes a 120-day comment period, allowing the incoming Trump administration to potentially determine the final rules for chip sales abroad.
  • Approximately 20 key allies and partners would face no restrictions on accessing chips, while other countries would have caps on imports, with potential exceptions for certain institutions.
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