US Tightens Controls on AI Chip Exports Amid China Tensions

The US government has unveiled new regulations to restrict the export of artificial intelligence (AI) chips and technology, aiming to bolster American leadership in AI while blocking China’s access. The rules, which take effect 120 days from publication, cap the number of AI chips that can be exported to most countries and exempt exports to 18 allies, including Japan, Britain, and the Netherlands.

The new regulations are part of a four-year effort by the Biden administration to hobble China’s access to advanced chips, which can enhance its military capabilities. The rules also impose worldwide licensing requirements on advanced chips, with exceptions, and set controls for “model weights” of the most advanced AI models.

Major cloud service providers, such as Microsoft, Google, and Amazon, will be able to seek global authorizations to build data centers, allowing them to deploy their AI computing power outside the US. However, they must abide by stringent conditions and restrictions, including security requirements and human rights reporting demands.

Industry voices have criticized the plan, with Nvidia calling it “sweeping overreach” that would limit access to technology already available in mainstream gaming PCs. The regulations divide the world into three tiers: exempt countries, countries with caps on AI chip exports, and arms-embargoed countries barred from receiving the technology altogether.

China has vowed to take necessary measures to safeguard its “legitimate rights and interests.” US National Security Adviser Jake Sullivan warned that rapid increases in AI’s capability could have a transformative impact on the economy and national security. The new regulations are expected to shape the global AI landscape, with the Trump administration set to weigh in once they take effect.

Source: https://www.reuters.com/technology/artificial-intelligence/us-tightens-its-grip-ai-chip-flows-across-globe-2025-01-13