Biden

The Biden administration is introducing a new export framework for advanced computer chips used in AI development. This aims to balance national security concerns with the economic interests of chip producers and other nations.

However, this framework, unveiled Monday, has sparked industry apprehension. Executives argue the regulations would restrict access to existing chips used in video games and limit the supply of data center and AI chips to 120 countries, including Mexico, Portugal, Israel, and Switzerland.

Commerce Secretary Raimondo stated in a press briefing that maintaining U.S. leadership in AI and AI chip development is crucial. She highlighted AI’s rapid advancement and its transformative potential across various sectors, including scientific research, automation, and warfare.

Raimondo emphasized that the increasing power of AI intensifies national security risks. The framework, she explained, is designed to protect cutting-edge AI technology from adversaries while facilitating broader access for partner nations.

White House national security advisor Jake Sullivan underscored the framework’s goal of keeping the most advanced AI development within the U.S. and its closest allies, preventing potential offshoring similar to that seen in the battery and renewable energy sectors.

The Information Technology Industry Council (ITI) sent a letter to Raimondo last week, cautioning that a hastily implemented rule could disrupt global supply chains and disadvantage U.S. companies.

ITI’s senior vice president for Asia and global trade policy, Naomi Wilson, stated that while they support national and economic security goals, the rule’s potential negative impact on U.S. global AI leadership is significant. She advocated for greater industry consultation.

An anonymous industry executive familiar with the framework expressed concern that the proposed restrictions would limit access to chips already used in video games, contradicting government claims. The executive also noted limitations on building data centers overseas.

The framework’s 120-day comment period means that the final regulations governing the export of advanced computer chips could be influenced by the next administration. This creates a scenario where the incoming administration will need to balance economic considerations with national security concerns.

Government officials emphasized the urgency of action to preserve America’s perceived six- to 18-month AI advantage over competitors like China, an advantage that could quickly erode if rivals acquire sufficient chips.

Nvidia’s vice president of external affairs, Ned Finkle, stated that the previous administration helped lay the foundation for AI development and that the proposed framework would stifle innovation without enhancing national security. He argued that while presented as an “anti-China” measure, these rules would control technology globally, including widely available technology in gaming PCs and consumer hardware.

The framework outlines that approximately 20 key allies and partners will face no restrictions, while other countries will have import caps on these chips. This list of unrestricted allies includes Australia, Belgium, Canada, Denmark, Finland, France, Germany, Ireland, Italy, Japan, the Netherlands, New Zealand, Norway, Republic of Korea, Spain, Sweden, Taiwan, and the United Kingdom.

Countries outside this group could purchase up to 50,000 GPUs per country. Government-to-government agreements could increase this limit to 100,000 if aligned with U.S. renewable energy and technological security goals.

Institutions in certain countries might qualify for a special status allowing purchases of up to 320,000 advanced GPUs over two years. However, overall limits would remain on the amount of AI computational capacity deployed abroad.

Furthermore, orders equivalent to 1,700 advanced GPUs would not require licenses or count towards national chip caps, likely aimed at meeting the needs of universities and medical institutions rather than data centers.

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