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Joe Biden: US tightens AI chip exports to protect security and leadership, draws industry criticism

by TOI World Desk
January 13, 2025
in World
Reading Time: 3 mins read
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The Biden administration introduced new export guidelines Monday for superior laptop chips utilized in synthetic intelligence, aiming to steadiness nationwide safety and financial pursuits.
The framework restricts chip entry for round 120 international locations, together with Mexico, Portugal, Israel, and Switzerland, regarding some trade executives.
Commerce secretary Gina Raimondo emphasised the necessity to preserve America’s AI management. “As AI turns into extra highly effective, the dangers to our nationwide safety develop into much more intense,” Raimondo stated. The framework, she defined, “is designed to safeguard essentially the most superior AI know-how and be sure that it stays out of the fingers of our international adversaries but additionally enabling the broad diffusion and sharing of the advantages with accomplice international locations.”
Nationwide safety adviser Jake Sullivan stated the framework goals to maintain cutting-edge AI improvement inside the US and with shut allies. Nonetheless, trade teams just like the Data Know-how Business Council and the Semiconductor Business Affiliation expressed considerations about potential provide chain disruptions and hurt to US competitiveness. “The brand new rule dangers inflicting unintended and lasting injury to America’s economic system and international competitiveness in semiconductors and AI by ceding strategic markets to our opponents,” stated SIA President and CEO John Neuffer.
An trade government, talking anonymously, claimed the restrictions would impression chips utilized in video video games and information heart building overseas, contradicting authorities claims. The 120-day remark interval means the incoming Trump administration might finally finalize the principles.
Officers acknowledged the urgency stems from a perceived six- to 18-month US benefit in AI over rivals like China. Nvidia’s Ned Finkle criticized the framework: “Whereas cloaked within the guise of an ‘anti-China’ measure, these guidelines would do nothing to reinforce US safety,” he stated. “The brand new guidelines would management know-how worldwide, together with know-how that’s already broadly out there in mainstream gaming PCs and client {hardware}.”
Roughly 20 allies, together with nations like Australia, Canada, France, Germany, Japan, South Korea, and the UK, will face no restrictions. Different international locations face import caps of fifty,000 graphics processing models, doubtlessly rising to 100,000 by authorities agreements. Some establishments can apply for permission to buy as much as 320,000 models over two years, topic to limits on general AI computational capability overseas. Orders equal to 1,700 models shall be exempt from licensing and caps, seemingly benefiting universities and medical establishments.
Microsoft expressed confidence in complying with the brand new coverage. “We’re assured we will comply absolutely with this rule’s excessive safety requirements and meet the know-how wants of nations and prospects world wide that depend on us,” stated Brad Smith, Microsoft’s president.





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