The United States Commerce Department has announced new rules to restrict the export of advanced computer chips and artificial intelligence (AI) technology to most countries worldwide. This move aims to prevent AI technology from falling into the hands of "malicious actors" who could leverage it to threaten national security. The restrictions are subject to a 120-day comment period before their implementation. These new regulations set export caps for specific technologies, requiring US companies to obtain authorization for sales in numerous countries. In contrast, Washington's closest allies, including the United Kingdom, are exempt from these limits.
The Biden administration has clarified that 18 allies and partners will not face these restrictions. However, countries like China, Russia, and Iran continue to experience stringent controls on technological exports.
The impact of these regulations is expected to be significant for companies such as Nvidia, a leading chip-maker. Nvidia has expressed concerns that these measures will not mitigate any threats but will instead "weaken America's global competitiveness" and stifle innovation.
"By attempting to rig market outcomes and stifle competition—the lifeblood of innovation—the Biden Administration's new rule threatens to squander America's hard-won technological advantage," said Nvidia.
The Information Technology and Innovation Foundation, a prominent tech policy think tank, also criticized the strategy. They argued that the US might benefit more from a focus on competition rather than containment.
"By pressuring other nations to choose between the United States and China, the administration risks alienating key partners and inadvertently strengthening China's position in the global AI ecosystem," stated Daniel Castro, vice president of the Information Technology and Innovation Foundation.
"Confronted with such an ultimatum, many countries may opt for the side offering them uninterrupted access to the AI technologies vital for their economic growth and digital futures," Castro added.
While most orders from educational and medical organizations fall under a threshold of 1,700 advanced GPUs, some critics argue that the new rules aim to ensure "the world's AI runs on American rails." The announcement has sparked fierce criticism from top US tech companies, warning that it may aid competitors instead.