A Week Before Trump Transition, Biden Team Proposes Sweeping AI Chip Controls
The Biden administration proposed new controls Monday over the export of advanced AI computer chips, affecting technology sales to more than 120 countries worldwide.
The framework establishes unrestricted access for 20 close allies, including Japan, Britain, and major European nations, while limiting exports to countries such as Mexico, Portugal, Israel, and Switzerland.
“It’s critical to preserve America’s leadership in AI,” said Commerce Secretary Gina Raimondo, explaining the framework “is designed to safeguard the most advanced AI technology and ensure that it stays out of the hands of our foreign adversaries while enabling the broad diffusion and sharing of the benefits with partner countries.”
Under the system, most nations could acquire up to 50,000 specialized AI processors annually, with potential increases to 100,000 through government agreements. Select institutions could apply for permission to purchase up to 320,000 advanced chips over two years.
Industry leaders immediately criticized the proposal. The Semiconductor Industry Association warned about “unintended and lasting damage to America’s economy and global competitiveness.” Nvidia’s Vice President of External Affairs Ned Finkle argued the rules would restrict widely available technology, including chips used in gaming PCs, without enhancing national security.
European Union officials objected to restrictions on EU members outside the privileged ally group, which includes Australia, Belgium, Canada, Denmark, Finland, France, Germany, Ireland, Italy, Japan, Netherlands, New Zealand, Norway, South Korea, Spain, Sweden, Taiwan, and the United Kingdom.
Major cloud providers like Microsoft received exemptions for trusted companies. “We’re confident we can comply fully with this rule’s high security standards and meet the technology needs of countries and customers around the world,” said Microsoft President Brad Smith.
“If it’s China and not the United States determining the future of AI on the planet, I think that the stakes of that are just profound,” said National Security Adviser Jake Sullivan, addressing the urgency of the measures.
The proposal includes a 120-day comment period, placing the final decision with the incoming Trump administration. Small orders equivalent to 1,700 processors would remain unrestricted, primarily benefiting universities and medical institutions rather than data centers.
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