The Biden administration is proposing a new restriction that would limit exports of advanced computer chip used to develop artificial intelligent, as part of an attempt to preserve America’s advantage of six to 18 months over rivals like China in AI.
The framework, which was proposed on Monday, has raised concerns among executives in the chip industry who claim that the rules will limit access to existing video game chips and restrict the use of AI chips and data centers in 120 countries. Mexico, Portugal Israel and Switzerland could be among the nations with limited access.
Nvidia, the chip giant, called ‘s proposal on Monday “misguided” and warned that it would “threaten to derail economic growth and innovation worldwide.”
In a conference call with journalists, Gina Raimondo, the Commerce Secretary said it was “critical” that America maintain its leadership in AI. She also spoke about the importance of developing AI-related chips. AI technology is rapidly evolving and enables computers produce novels, conduct scientific research, automate driving, and encourage a variety of other transformations which could reshape the economy and warfare.
Raimondo stated that as AI technology becomes more powerful, risks to national security will become more severe. The framework is “designed to safeguard the most sophisticated AI technology, ensure that it remains out of the foreign adversaries’ hands but also enable the wide diffusion and sharing the benefits with partners countries.”
Jake Sullivan, White House National Security Advisor, said that the framework will ensure that AI’s most cutting edge aspects are developed in the United States with its closest allies and not offshored like the battery or renewable energy sector.
Officials from the government said that they felt it was important to act fast to maintain U.S. firms’ advantage over China, and other countries. This edge could easily be eroded by competitors who could stockpile and gain further advantages.
In a recent research report, Wedbush’s Dan Ives called the AI-enhanced tech a “once in generation 4th Industrial Revolution”.
What are the risks of AI leadership?
In a letter sent last week, the Information Technology Industry Council warned Raimondo that a new rule implemented hastily by the Democratic Administration could fragment global supply chain and put U.S. businesses at a competitive disadvantage.
Naomi Wilson, senior vice president of the group for Asia and global policy, said in a statement that “While we agree with the U.S. Government’s commitment to economic and national security, it is important to emphasize the potential risks the rule poses to U.S. leadership in AI.” She called for more consultation with the tech sector.
Unnamed industry executives, who are familiar with the framework but insisted on anonymity when discussing it, stated that the proposed restrictions will limit the access to video game chips, despite the claims of the government to the contrary. The executive also said that it would limit the companies who could build data centres abroad.
Nvidia bashes proposal
The framework contains a 120-day period for comments, which means that the new Republican administration under President-elect Donald Trump may ultimately decide the rules regarding the sale of advanced computer chip technology abroad. Trump is now faced with a situation where he will need to balance the economic interests of the United States, as well as the safety of its allies.
Ned Finkle said that in a press release that the previous Trump administration helped to create the foundations for AI development. He also stated that the proposed framework will harm innovation and not achieve the stated national-security goals.
He said that, “while disguised as an anti-China measure, these rules will do nothing to increase U.S. Security.” The new rules would regulate technology around the world, including technologies that are already widely available on mainstream gaming PCs and consumer electronics.
According to the White House, under the framework, approximately 20 key partners and allies would not be restricted in their access to chips. However, other countries could only import a limited number of chips.
Nation without restriction
Australia, Belgium Canada Denmark Finland France Germany Ireland Italy Japan the Netherlands New Zealand Norway Republic of Korea Spain Sweden Taiwan United Kingdom and Australia are allies that do not have any restrictions.
Users from outside these close allies can purchase graphics processing units up to 50,000 per country. There would also be government-to-government deals which could bump up the cap to 100,000 if their renewable energy and technological security goals are aligned with the U.S.
In certain countries, institutions could apply for a special legal status which would allow them to purchase up 320,000 advanced graphics processor units in two years. There are still limits to the amount of AI computing capacity that can be sent abroad by institutions and companies.
Among other standards, orders for computer chips equivalent to 1,700 advanced graphic processing units will not require a license or count towards the national chip limit. This exception would help meet orders from universities and medical institutions as opposed to data centres.
