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Biden Administration Proposes New AI Chip Export Restrictions

Published at: January 13, 2025

The Biden administration is making waves in the world of artificial intelligence development by proposing new restrictions on the export of advanced computer chips used to power AI applications. These measures are part of an ongoing effort to maintain the United States’ edge in the rapidly evolving AI technology landscape, especially when compared to rivals like China.

What’s in the Proposal?


The framework suggests limiting chip exports to as many as 120 countries, including nations like Mexico, Portugal, Israel, and Switzerland. These restrictions would target chips widely used for AI development, data centers, and even video games.

Why is This Happening?


Commerce Secretary Gina Raimondo emphasized the need to protect U.S. leadership in artificial intelligence development and related chip technology. The administration fears that without these restrictions, countries like China could stockpile chips, eroding the U.S.’s competitive edge in the global market.

Read Also: Blueprint for an AI Bill of Rights

Pushback from Industry Giants


Chip giant Nvidia has called the proposal “misguided,” warning it could derail innovation and global economic growth. Ned Finkle, Nvidia’s vice president of external affairs, criticized the measures, stating they won’t achieve their intended national security goals.

Concerns from the Tech Community


The Information Technology Industry Council also voiced concerns. Naomi Wilson, the group’s senior vice president for Asia and global trade policy, urged for more consultation with the industry to avoid fragmenting global supply chains.

Countries Without Restrictions


About 20 U.S. allies will retain full access to advanced chips, including Australia, Canada, Japan, and several European nations. This unrestricted access aims to foster artificial intelligence research and strengthen ties with trusted partners.

What’s Next?


The framework includes a 120-day comment period, allowing stakeholders to weigh in. With AI heralded as a key driver of economic growth and innovation, the stakes are high.

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Author Details

Shubham Sahu
Content Writer

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