U.S. to Set AI Chip Export Rules, Tech Giants to Assume Gatekeeper Role - Reuters
According to a report based on information from individuals familiar with the draft plan, the U.S. is preparing to introduce new regulations that would designate technology companies like Alphabet's (NASDAQ: GOOGL) Google and Microsoft (NASDAQ: MSFT) as global gatekeepers for the distribution of artificial intelligence (AI) chips. These companies will be permitted to offer AI capabilities in cloud services abroad without licenses, provided they comply with stringent reporting requirements and prevent Chinese entities from accessing these AI chips.
The soon-to-be-released rules, detailed for the first time, are part of the Biden administration's efforts to balance facilitating AI chip exports with preventing acquisition by entities that could pose a threat. Within the U.S. government, there are concerns that AI technology could be used by China to enhance its military capabilities, conduct sophisticated cyber attacks, or develop biological weapons.
While the Department of Commerce has not commented on the specifics or timeline for the new regulations, sources indicated that the administration's plans could still be subject to change. Neither Google nor Microsoft responded to inquiries regarding this measure.
This initiative follows a model established by a national security agreement signed in April between Microsoft and the U.S. government, which allows the company to provide AI technology to G42, a United Arab Emirates firm historically connected to China.
Under the draft rules, companies without gatekeeper status can still apply for licenses to import a limited amount of high-performance AI chips from manufacturers such as Nvidia and AMD in each country. Nvidia has expressed willingness to cooperate with the U.S. government regarding regulations, while AMD did not respond.
The proposed regime will exempt 19 allied countries, including the Netherlands, Japan, and Taiwan, allowing them unlimited access to AI chips or the capabilities they provide. Conversely, obtaining U.S.-made AI semiconductors will continue to be prohibited for countries under nuclear embargo, such as Russia, China, Iran, and Venezuela.
A government announcement earlier this week indicated that the final review of the “AI Proliferation” rule is ongoing, suggesting that the regulations may be published soon. This rule is believed to relate to export restrictions on AI chips.
The Information Technology Industry Council, representing companies like AMD and Google, has raised concerns that the Biden administration might expedite this complex rule without sufficient input from the industry. This could hinder the prevention of unwanted negative effects. Naomi Wilson, the Council's senior vice president for Asia and global trade policy, noted that such changes could significantly alter the landscape of export controls and have widespread global implications.
These new rules expand a program introduced in September that allows pre-approved international data centers to receive AI chips without a license. To qualify for this status, data centers must disclose comprehensive information about their operations, including customer details, business activities, access controls, and cybersecurity measures.