Biden Administration Unveils Tough New Export Controls On China In Pursuit Of Ai Supremacy

US Announces Bold New Export Control Scheme to Prevent China’s Access to AI Chips and Models

The Biden administration has unveiled a novel export control scheme designed to restrict the global dissemination of advanced AI chips and models. The “AI Diffusion” rule, set to be enforced by the Commerce Department’s Bureau of Industry and Security, will divide the world into two categories: those nations allowed relatively unfettered access to cutting-edge AI technology, and those requiring special licenses.

The trusted nations list includes the UK, Canada, Australia, Japan, France, Germany, Belgium, Denmark, Finland, Ireland, Italy, the Netherlands, New Zealand, Norway, Republic of Korea, Spain, Sweden, and Taiwan. Companies in these nations will be able to acquire up to 1,700 of the latest AI chips without special permission, but will need to apply for licenses to access more advanced technology or build large-scale data centers utilizing US-made components.

The new rule is aimed at safeguarding national security by preventing China from acquiring advanced AI models. The administration argues that the semiconductors powering AI and the model weights are dual-use technologies with commercial applications, but also pose significant risks as they can be used for nuclear simulations, bio-weapon development, and military advancements.

The restriction will significantly impact international sales of AI technology at a time when the industry is critical to global competitiveness. Nvidia, the leading manufacturer of AI chips, has expressed concerns about the new rule, labeling it “unprecedented and misguided.” The company warns that these regulations would undermine innovation and weaken America’s position in the global market.

The US already limits exports of advanced AI chips to China, but companies have found ways to circumvent these restrictions by building algorithms using computer clusters located in other nations. Under the new rule, China will be unable to replicate this strategy, as access to frontier AI models built in countries impacted by the rule will be restricted.

Gina Raimondo, US Commerce Secretary, emphasized the importance of maintaining America’s lead in AI development and chip design. The administration’s move aims to secure the nation’s technological edge while addressing concerns about security risks posed by the unregulated transfer of advanced AI technology.