US unveils new grip on AI chip exports, igniting criticism
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The news: The US announced new restrictions on exporting advanced AI chips and related technology to over 120 countries, aiming to maintain dominance in AI and block adversaries like China, Russia and Iran from accessing the technology.
The context: Announced in the final days of President Joe Biden's administration, the most extensive AI export restrictions yet aim to solidify US dominance in the technology by restricting global access to advanced chips.
It caps a four-year effort to limit China’s military advancements and control AI development worldwide. The incoming Trump administration is expected to maintain a similar stance on competitive threats.
The numbers: The rules are effective in 120 days, and impose strict licensing limits for over 120 other nations, US officials said, while exemptions apply to 18 allied nations, including Japan, the UK and the Netherlands.
Non-allied nations can only import up to 50,000 chips, while allies face no limits.
The regulations divide countries into three tiers with varying export limits and conditions. Companies exporting AI technology must meet strict security and human rights conditions, and major cloud providers may seek authorisations to establish data centres globally under the new regime, according to reports citing Commerce Secretary Gina Raimondo.
Gaming chips and low-capacity AI models remain unrestricted.
AI chipmaker Nvidia criticised the rules as "sweeping overreach," predicting harm to US innovation and competitiveness. Nvidia's shares dropped as much as 4.7%, also seemingly impacted by a report from The Information, claiming major clients were delaying orders of its latest Blackwell AI chip racks due to overheating and connectivity issues.
Shares of Advanced Micro Devices fell 1.4%, Intel declined 2%, and major cloud providers, including Microsoft, Amazon and Alphabet, saw drops of about 1-2%.
What they said:
“In the wrong hands, powerful AI systems have the potential to exacerbate significant national security risks, including by enabling the development of weapons of mass destruction, supporting powerful offensive cyber operations, and aiding human rights abuses, such as mass surveillance,” the White House said. “Today, countries of concern actively employ AI – including U.S.-made AI – in this way, and seek to undermine US AI leadership.”
China condemned them as a violation of trade rules. “The Biden administration has abused export control measures, seriously hindering normal economic and trade exchanges between countries, seriously undermining market rules and international economic and trade order, seriously affecting global scientific and technological innovation,” the Chinese Ministry of Commerce said in a statement Monday.
The sources: White House statement , The Information , Nvidia statement, Bloomberg, Reuters
