US moves to tighten AI Chip exports in final push before Biden leaves office

The Biden administration is now preparing new restrictions to bar the export of AI chips, such as those made by Nvidia Corp. The move, which came just days before President Joe Biden leaves office, is another piece of a larger strategy to control who gets to develop and use cutting-edge AI.

According to a Bloomberg report, the plan purports to cut sales of AI chips used in data centers based on country and company. This is an effort to limit China and Russia’s access to advanced technology. Sources familiar with the issue said the goal is to prod AI growth in US-allied countries and force global companies to conform to American standards.

The new AI Chip export regulations are based on three tiers

New rules may hit as soon as Friday, which could soon restrict semiconductor trade worldwide. The regulations would create three separate levels of export controls.

Mapped data reveals different degrees of restrictions in chip shipments. Source: Bloomberg

The US would allow close allies unlimited access to American chips while stopping them altogether to adversarial nations. However, most countries would have limits on how much computing power they can bring in.

One source said the US is hoping to persuade nations in the third tier to agree to follow US security and human rights rules to surpass their national caps. This arrangement is a validated end-user (VEU) designation that enlists a trusted group of organizations to make and use AI technology safely. The aim is to make AI ecosystems secure globally and prevent misuse.

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