With one week left in his term, President Joe Biden has introduced new guidelines and restrictions on the export of U.S.-made AI chips.
On Monday, the administration released an interim final rule on AI proliferation. The ruling aims to “clarify how allies and partners can benefit from AI” and streamline licensing hurdles for chip orders, according to a White House press release. However, these rules also introduce new chip sales restrictions in the majority of countries around the world.
These new guidelines divide countries into three groups, CNN reports.
The first group includes the United States' strongest allies, such as Japan and South Korea, which will not be affected by the new restrictions. The second group includes countries such as China and Russia. These countries already cannot afford advanced AI chips and will face further restrictions under the new guidelines for most “closed” AI models. The third group, which includes most of the world, will have a cap on the number of chips they can buy. The graphics processing unit limit is set at 50,000 per country, but there are many ways countries can access higher quotas.
CNN reports that this third group of countries, which are neither America's strongest allies nor enemies, includes Mexico, Portugal, and Israel, among others, and will likely be most affected by this change. Restrictions on this group of countries are intended to prevent adversaries such as China and Russia from purchasing chips through these countries, but in the process they will also negatively impact AI adoption in these countries. Dew.
Nvidia issued a statement on Monday calling the proposed rules “unprecedented and misguided,” adding that they would “derail” innovation and economic growth around the world.
These proposals are intended to build on guidance issued by the Biden administration in October 2022 and October 2023. Today's proposal also includes a 120-day comment period, but CNN reports that the rules are expected to go into effect before that period ends.
The news has caused quite a stir in the AI community, but with a new administration taking office next week, the debate over chip export controls could look very different by the end of the month.