Biden Plans New AI Export Curbs

In a last-minute push, the Biden administration is planning to introduce new restrictions on the export of artificial intelligence chips, aiming to keep advanced technologies out of the hands of China and Russia. The regulations, which could be issued as soon as Friday, would create a three-tier system, limiting the sale of AI chips used in data centers on both a country and company basis.

The top tier would include the US and 18 allies, such as Germany, Japan, and Taiwan, which would maintain unrestricted access to American chips. The second tier would establish maximum levels of computing power for the rest of the world, equivalent to about 50,000 graphic processing units (GPUs) from 2025 to 2027. Companies in this tier could access higher limits by applying for validated end-user (VEU) status, demonstrating compliance with US government security and human rights standards.

The third, most restrictive tier would affect China, Macau, and countries under US arms embargo, with shipments to data centers in these locations broadly prohibited. The Semiconductor Industry Association and Nvidia have expressed opposition to the move, citing concerns about economic growth, US leadership, and the potential harm to the global computing market.

The new rules would also limit the export of closed AI model weights, prohibiting companies from hosting powerful closed model weights in Tier 3 countries. Open weight models and less powerful closed models would be exempt from these controls.

The Biden administration's plan aims to concentrate AI development in friendly nations and encourage businesses worldwide to align with American standards. The move is seen as an attempt to control the spread of AI technology amid soaring demand, with the US seeking to maintain its position as a gatekeeper for global AI development.