The Biden administration is proposing new restrictions to limit exports of advanced computer chips used to develop artificial intelligence, part of an effort to maintain the United States’ 6- to 18-month advantage in AI over rivals such as China. .
The framework proposed on Monday is raising concerns from chip industry executives who say the rules will limit access to existing chips used in video games and restrict chips used in data centers and AI products in 120 countries. . Mexico, Portugal, Israel and Switzerland are among the countries where access may be restricted.
Chip giant Nvidia said Monday the proposal was “misguided” and “risks derailing innovation and economic growth globally.”
Commerce Secretary Gina Raimondo previewed the framework on a call with reporters, saying it was “critical” to maintain U.S. leadership in AI and the development of AI-related computer chips. Rapidly evolving AI technologies will enable computers to create novels, revolutionize scientific research, automate driving, and catalyze a variety of changes that could reshape economies and warfare.
“As AI becomes more powerful, the risks to national security also become greater,” Raimondo said. The framework is “designed to protect the most advanced AI technologies and ensure they do not fall into the hands of foreign adversaries, while also enabling widespread dissemination and sharing of the benefits with partner countries.”
White House National Security Advisor Jake Sullivan emphasized that the framework will ensure that the most cutting-edge aspects of AI are developed within America’s closest allies rather than going abroad, such as in the battery and renewable energy sectors.
Government officials felt they had to act quickly to maintain the upper hand of American companies over China and other countries. This advantage can easily be undermined if competitors stockpile chips and make additional profits.
AI-enhanced technologies are expected to help drive growth and increase business productivity. Wedbush analyst Dan Ives calls the technological development “a once-in-a-generation Fourth Industrial Revolution” in a recent research note.
Risks to AI Leadership?
The Information Technology Industry Council, a technology industry group, warned Raimondo in a letter last week that rushing to implement the Democratic administration’s new rules could fracture global supply chains and put American companies at a disadvantage.
“While we share the U.S. government’s commitment to national and economic security, the potential risks of this rule to U.S. global leadership in AI are limited,” Naomi Wilson, the group’s senior vice president for Asia and global trade policy, said in a statement. “I cannot emphasize this too much,” he said. She called for broader consultation with the tech industry.
One industry executive familiar with the framework and who insisted on anonymity to discuss it said the proposed restrictions would limit access to chips already used in video games, despite the government’s claims otherwise. He said it would also limit which companies can build data centers overseas.
Nvidia condemns proposal
The framework includes a 120-day comment period, allowing the Republican administration of incoming President-elect Donald Trump to ultimately determine rules for overseas sales of advanced computer chips. This sets up a scenario in which Trump must balance economic interests with the need to keep the United States and its allies safe.
Ned Finkle, Nvidia’s vice president of external affairs, said in a statement that the previous Trump administration helped lay the groundwork for AI development and that the proposed framework would stifle innovation while failing to achieve stated national security goals.
“These regulations are disguised as ‘anti-China’ measures, but they will do nothing to strengthen America’s security,” he said. “The new rules will govern technologies globally, including those already widely used in mainstream gaming PCs and consumer hardware.”
Under this framework, about 20 key allies and partners would see no restrictions on chip access, but other countries would be restricted on the chips they could import, according to a fact sheet provided by the White House.
country without restrictions
Non-restricted allies include Australia, Belgium, Canada, Denmark, Finland, France, Germany, Ireland, Italy, Japan, Netherlands, New Zealand, Norway, South Korea, Spain, Sweden, Taiwan, and the United Kingdom.
Users outside of these close alliances can purchase up to 50,000 graphics processing units per country. There could also be a government-to-government deal that could increase the limit to 100,000 if its renewable energy and technology security goals align with those of the United States.
Organizations in certain countries can also apply for legal status to purchase up to 320,000 advanced graphics processing units over two years. However, there are limits to the extent to which companies and other institutions can deploy AI computing capacity overseas.
Additionally, orders of computer chips equivalent to 1,700 advanced graphics processing units will not require a license to import or count against national chip limits, among other standards set by the framework. The exception for 1,700 graphics processing units will help meet orders from universities and healthcare institutions as opposed to data centers.
