The US government has announced strict restrictions on the export of advanced AI chips, including those from Nvidia. This is to slow down China’s technological progress. Friendly countries are exempted from these measures.
The new rules limit the amount of computing power that can be exported to most countries. According to the U.S. government, companies in these countries can circumvent the limits by committing to a set of security and human rights standards.
Commerce Secretary Gina Raimondo stressed that the Biden administration is seeking a balance between protecting national security and allowing chip trade. The new restrictions exclude supply-chain activities and gaming chips. In addition, licenses will be granted for selling chips with low collective computing power, such as to universities and research institutes.
Stringent sanctions and exemptions
The US is growing concerned about China’s increasing technological power, which has led to a further escalation of the economic conflict between the two countries in recent months. With sanctions, the US is trying to prevent China from accessing advanced AI chips, such as Nvidia chips for data centers. Russia, Iran, and North Korea also face such blockades due to geopolitical tensions.
At the same time, the US wants to promote the development of artificial intelligence in friendly countries. Therefore, a system with three different levels has been introduced, with 18 countries exempted from the new sanctions.
Industry criticism
Tech companies such as Nvidia and Oracle have warned that these measures could prove disastrous for the U.S. technology industry. Nvidia’s vice president of government affairs Ned Finkle warns that the Biden administration’s plans “threatens to squander America’s hard-won technological advantage” by “attempting to rig market outcomes and stifle competition.”
With the measures, the U.S. government hopes to align global AI development with its own standards and require AI applications to rely on American—not Chinese—technology. However, how a possible Trump administration will implement and enforce these rules remains uncertain.
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