Biden admin puts new restrictions on AI chip, technology exports

The Biden administration is further restricting the sale of advanced chips used to power and develop artificial intelligence (AI) amid growing concerns about the use of American-made AI by foreign adversaries.

The AI "diffusion" rule announced Monday would place caps on chip sales to most countries around the world. Eighteen U.S. allies and partners would be exempt from the new restrictions.

“This policy will help build a trusted technology ecosystem around the world and allow us to protect against the national security risks associated with AI, while ensuring controls do not stifle innovation or US technological leadership,” Commerce Secretary Gina Raimondo said in a statement.

The new framework would require licenses for most chip sales, with varying allowances based on a country’s relationship with the U.S.

Those that are not U.S. allies would be permitted to purchase up to 50,000 advanced graphics processing units (GPUs), although this number could be doubled through government-to-government arrangements.

Individual entities would also be able to apply for a special status to purchase up to 320,000 advanced GPUs in order to facilitate the construction of data centers.

Allied countries are exempt from the licensing requirements. These include Australia, Belgium, Canada, Denmark, Finland, France, Germany, Ireland, Italy, Japan, the Netherlands, New Zealand, Norway, the Republic of Korea, Spain, Sweden, Taiwan and the United Kingdom.

Smaller shipments of up to 1,700 advanced GPUs would also not require licenses and would not count toward country's chip caps.

The rule was immediately slammed by the semiconductor and chips industry. Nvidia, a top producer of advanced GPUs, called the framework “unprecedented and misguided” and warned it could “derail innovation and economic growth worldwide.”

“By attempting to rig market outcomes and stifle competition — the lifeblood of innovation — the Biden Administration’s new rule threatens to squander America’s hard-won technological advantage,” Ned Finkle, Nvidia’s vice president of government affairs, said in a statement.

The Semiconductor Industry Association (SIA) also said it was “deeply disappointed” the rule was unveiled just days before a change in administration and without much input from industry.

“The new rule risks causing unintended and lasting damage to America’s economy and global competitiveness in semiconductors and AI by ceding strategic markets to our competitors,” SIA President and CEO John Neuffer said in a statement. “The stakes are high, and the timing is fraught.”

Topics

Biden Administration Makes Last-Ditch Effort to Curb AI Chip Exports

The new rules meant to govern exports of sophisticated AI processors are meant to address national security concerns, but have already provoked an industry pushback.
Inc. - 19h
New US Rule Aims to Block China’s Access to AI Chips and Models by Restricting the World

The US government has announced a radical plan to control exports of cutting-edge AI technology to most nations.
Wired - 1d
US imposes export controls on chips for AI to counter China

American semiconductor industry warns move will aid competitors while EU has also protested against the new rules
Financial Times - 13h
Biden administration proposes new restrictions on AI chip exports

The proposal is raising concerns with the chip industry, with artificial intelligence leader Nvidia calling it "misguided."
CBS News - 22h
Biden administration planning new AI chip export limits that would hit Nvidia, report says

The White House is finalizing additional restrictions on the export of artificial intelligence microchips that would hit companies including Nvidia and Advanced Micro Devices, according to a report.
MarketWatch - 5d
Alaska sues Biden administration over restrictions on arctic oil, gas development

The state of Alaska on Wednesday sued the Biden administration over restrictions the federal government imposed in December on oil and gas leases in the Arctic set for auction this week. The ...
The Hill - 5d
What to know about Biden’s new offshore drilling restrictions

President Biden's move to bar drilling across the U.S.'s East and West coasts, while splashy, may not have significant climate or energy impacts in the years ahead. Because very little oil and gas ...
The Hill - Jan. 7
Trump rips Biden’s offshore drilling restrictions: ‘I’ll unban it immediately’

President-elect Trump blasted President Biden’s decision to block oil drilling across large swaths of the U.S.’s coastlines, saying he will “unban it.” “It’s ridiculous; I’ll unban it immediately,” ...
The Hill - Jan. 6
Johnson on homeland security: Biden admin didn't prioritize 'the right things'

Speaker Mike Johnson (R-La.) criticized President Biden's administration's handling of homeland security following the deadly New Orleans truck attack, arguing they did not prioritize “the right ...
The Hill - Jan. 3
Unlawful border crossings hit lowest level of Biden admin in November

U.S. Customs and Border Patrol (CBP) announced a new low for border level crossings during the month of November ahead of President Biden’s exit from the White House. Statistics released by the ...
The Hill - Dec. 31