US Tightens AI Chip Export Regulations Back of Trump&#039, s Opening

As President Joe Biden prepares to step down from office on Monday, the Biden administration announced sweeping limits on the trade of artificial intelligence bits and associated technologies.

The” Interim Final Rule on Artificial Intelligence Diffusion,” which was made public just weeks before Donald Trump’s move as president, aims to maintain U.S. supremacy in AI while preventing enemies from using innovative methods for hacker-like purposes.

According to a statement from the White House, “it is crucial that we do not abroad this crucial systems and ensure that the world’s AI runs on British rails” in order to strengthen U.S. national security and economic power.

The number of sophisticated graphics processing devices and other AI-related systems that can be exported is limited by the restrictions. &nbsp,

While the U. S. and 18 of its closest friends, including the UK and Japan, are free, countries like China, Russia, Iran, and North Korea remain under strict restrictions. &nbsp,

Additionally, the laws add new export licensing requirements to more than 120 countries, and they also make it possible for foreign governments to sign agreements to ease restrictions.

Entities that adhere to stringent security standards can obtain special statuses like Universal Verified End User ( UVEU) or National Verified End User ( NVEU), enabling them to utilize modern GPUs and responsibly scale AI capabilities. &nbsp,

NVEU companies can acquire GPUs worth 320, 000 advanced products over the course of two years, while UVEU companies can manage up to 7 % of their global AI power outside close friends.

Smaller, low-risk chip orders —often used by universities and research institutions—will bypass the licensing process entirely.

Pushback

The technology industry has been harshly criticized for the statement. &nbsp,

Intel large Nvidia criticized the plan as “unprecedented and mistaken”, warning that it could destroy U. S. technology and global profitability.

” While cloaked in the guise of an’ anti-China ‘ estimate, these guidelines would do nothing to strengthen U. S. surveillance”, Nvidia’s president of state affairs, Ned Finkle, said in a speech.

Now, Nvidia sells AI bits to China, but they are scaled-down types designed to cooperate with U. S. trade restrictions imposed in 2022. &nbsp,

These chips are produced to meet the demand in China without violating U.S. protection regulations because they have less computing power.

The new law even caps chip exports to another non-allied countries at 50, 000 Graphics per region, ensuring that U. S. systems supports legitimate uses, such as healthcare and education, without enabling adversaries. &nbsp,

Countries that follow the new rules for aligning their AI and export control policies with the United States can double their chip caps through government-to-government agreements.

The regulations are scheduled to go into effect mid-May, giving time for adjustments under Trump’s leadership after his inauguration on January 20.

” We hope that the next administration takes full advantage of those 120 days to listen to experts, industry, industry players, partner countries, consider their input, and I fully expect the next administration may make changes as a result of that input” ,&nbsp, US Secretary of Commerce Gina Raimondo said.