The outgoing administration of the President of the United States, Joe Biden, is planning a new way to export advanced computer equipment used to create artificial intelligence, trying to balance national security concerns over technology and the economic interests of manufacturers and other countries.
But the order proposed on Monday also raised concerns from chip regulators who say the rules will limit access to chips used in video games and ban in 120 countries chips used in data centers and AI products. Mexico, Portugal, Israel and Switzerland are some of the countries that may not have the least chance.
Commerce Secretary Gina Raimondo said in a press call previewing the plan that it is “critical” to maintain America's leadership in AI and the production of AI-related computer chips. Advances in AI technology are enabling computers to create documents, conduct scientific research, drive cars and power other revolutions that could revolutionize the economy and warfare.
“As AI becomes more powerful, the threat to our nation's security grows exponentially,” Raimondo said. The plan is “designed to protect the most advanced AI technology and ensure it stays out of the hands of our foreign adversaries and to facilitate diffusion and benefit sharing with host nations.”
White House security adviser Jake Sullivan emphasized that the plan will ensure that the most advanced parts of AI will be developed in the US and with close cooperation with them instead of just being scrapped like batteries and power supplies.
A technology group, the Information Technology Industry Council, warned Raimondo in a letter last week that a new law passed hastily from the Democratic Party could split global chains and put US companies at risk. Another group, the Semiconductor Industry Association (SIA), said on Monday that it was disappointing that the process was “rushing to the door” before the presidential transition. President-elect Donald Trump will take office on January 20.
“This new regulation risks unintended damage to the American economy and global competition in semiconductors and AI by ceding technology markets to competitors,” SIA President and CEO John Neuffer said.
A company official familiar with the plan who spoke on condition of anonymity said the restrictions would limit access to chips used in video games, despite the government's claims to the contrary. The official said it will also limit the number of companies that can build data centers abroad.
'Control technology around the world'
Because the framework includes a 120-day comment period, Trump's incoming Republican administration can determine the rules for exporting high-end computer chips. This establishes how Trump must balance US economic interests with the need to protect the country and its allies.
Officials say they see the need to act quickly in hopes of maintaining what appears to be a six- to 18-month lead for the US in AI over rivals such as China, a head start that could be eroded if rivals can hold onto the chips and reap other benefits.
Ned Finkle, vice president of external affairs for the chipmaker Nvidia, said in his statement that the Trump administration helped to establish the basis for the development of AI and a system that aims to destroy technology without achieving national security goals.
“Even if they are covered by an 'anti-China' policy, these regulations will do nothing to strengthen US security,” he said. “These new rules could regulate technology around the world, including technology already found in computer games and consumer devices.”
Under the plan, about 20 allies and partners will not face restrictions on access to the chips, but other countries may face restrictions on the chips they can import, according to a statement issued by the White House.
Partners without restrictions include Australia, Belgium, Canada, Denmark, Finland, France, Germany, Ireland, Italy, Japan, the Netherlands, New Zealand, Norway, South Korea, Spain, Sweden, Taiwan and the United Kingdom.
Users outside these partners can purchase more than 50,000 units of graphics in each country. There will also be government-to-government agreements that could raise the target to 100,000 if their renewable energy and technology security goals meet the US.
Organizations in other countries can also apply for a statutory license that would allow them to purchase up to 320,000 photo-generating units over a two-year period. However, there may be limits to how much AI can be outsourced by companies and other organizations.
Also, orders for computer chips equivalent to 1,700 units of high-quality graphics will not require a license to enter or count against the national cap. The exception of 1,700 image processing units can help meet the requirements of universities and hospitals rather than data centers.
The new rules are not expected to hinder the AI-driven data expansion plans of leading cloud computing giants such as Amazon, Google and Microsoft because of the exemption for trusted companies that want large batches of advanced AI chips.
China's Ministry of Commerce said in response to the proposed regulations that China would take steps to protect its “rights and interests”.