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The US commerce department has recently made headlines by scrapping a rule put in place by the Biden administration that limited exports of artificial intelligence chips. A US official stated that the rule was deemed “unenforceable” due to its excessive red tape. This decision by the Trump administration signifies a shift towards a more lenient approach to regulating AI and other advanced technologies within the country.
The move comes at a time when the US is grappling with the increasing dominance of Chinese companies in the sector. Instead of allowing the Biden-era controls to take effect on May 15, the Trump administration plans to draft a new rule aimed at ensuring the flourishing of US technology while preventing American adversaries from gaining access to it. However, the official noted that the new rule would not be implemented immediately and would require some time to be put in place.
The previous “AI diffusion” export controls, introduced during the final days of Joe Biden’s presidency, established a three-tier licensing system for AI chips used in data centers, such as Nvidia’s powerful graphics processing units. The intention behind these controls was to make it more difficult for Chinese companies to bypass US export regulations by obtaining these chips through third countries.
Under the planned legislation, there was a cap on chip export volumes for all countries except for a select few, including G7 members and Taiwan. Over 100 countries were classified under the “middle” tier, which faced restrictions on chip exports. The rules faced criticism from the EU, Nvidia, and the wider chip industry, with ongoing feedback from the industry.
Nvidia, a prominent player in the chip industry, has yet to comment on the recent developments. This story is still unfolding, with additional reporting provided by Michael Acton in San Francisco.
As the landscape of AI technology continues to evolve, it is essential for policymakers to strike a balance between fostering innovation and safeguarding national security interests. The decision to revoke the previous export controls signals a shift in approach towards regulating advanced technologies, reflecting the challenges posed by the global competitive landscape. Stay tuned for further updates on this developing story.
