Biden administration's new AI chip export rules spark controversy in the industry

Washington is confident that the new structure of exports of advanced computer chips will ensure that they are developed in the United States, not in offshore jurisdictions. But among chip industry executives, the White House's proposal was not welcomed: if implemented, U.S. companies could be at a disadvantage, industry executives say.

Writes UNN with reference to WP.

Details

The Biden administration is proposing a new framework for exporting advanced computer chips used to develop artificial intelligence, trying to balance national security concerns about the technology with the economic interests of manufacturers and other countries.

White House National Security Advisor Jake Sullivan emphasized that this structure will ensure that the most advanced aspects of artificial intelligence are developed in the United States and with its closest allies, and not offshore, such as in the battery and renewable energy sectors.

Monday's proposed framework has raised concerns among chip industry executives, who say the rules will restrict access to existing chips used for video games. The framework also has the potential to restrict chips used for data centers and AI products in 120 countries. Among the countries that could have limited access are Mexico, Portugal, Israel, and Switzerland.

The government explains the need to pay attention to this segment:

It is “critically important” to maintain America's leadership in artificial intelligence and the development of computer chips related to artificial intelligence,

The minister also noted that “the risks to our national security are becoming even more intense” as AI becomes more powerful.

Representatives of the Technology Industry Group at the Information Technology Industry Council have also weighed in: experts warned Raimondo in a letter last week that the Democratic administration's hasty implementation of the new rule could fragment global supply chains and put U.S. companies at a disadvantage.

The potential risks of this rule for the US global leadership in artificial intelligence cannot be overemphasized

She called for broader consultations with the technology industry.

Recall

The Biden administration plans to introduce new rules that will limit China's access to powerful GPUs for AI. The restrictions are aimed at controlling global chip supply and eliminating regulatory loopholes.