Joe Biden introduces new AI chip export rules to curb China’s access amid anger from tech firms

The US has introduced new rules to limit the export of computer chips used in artificial intelligence (AI), aiming to keep advanced technology out of the hands of competitors like China. The move comes just a week before the Biden administration leaves office.

Announced on Monday (Jan. 13), the new policy allows 20 allied and partner nations unrestricted access to these AI-related chips while imposing licensing requirements on most other countries. However, the US semiconductor industry has quickly voiced opposition to the plan.

The restrictions, part of a long-running effort to curb China’s AI advancements in military and industrial technology, are likely to further strain relations between Washington and Beijing. All of this unfolds just days before President-elect Donald Trump’s inauguration on January 20. In May, the government also revoked export licenses from companies that supplied Chinese company Huawei with chips for phones and laptops.

BREAKING: Nvidia pushes back on imminent Biden administration AI export controls, arguing they would harm US competitiveness without improving security. $NVDA Statement:

“Every datacenter is being accelerated, and every business and application is incorporating mainstream AI..

— Kristina Partsinevelos (@KristinaParts) January 8, 2025

Nvidia reportedly objected to the proposal in a statement: “A last-minute rule restricting exports to most of the world would be a major shift in policy that would not reduce the risk of misuse but would threaten economic growth and US leadership.

“The worldwide interest in accelerated computing for everyday applications is a tremendous opportunity for the US to cultivate, promoting the economy and adding US jobs.”

Similarly, in a scathing post by Oracle, the multinational tech firm wrote: “[The] Biden Administration … has managed to shrink the global chip market for US firms by 80 percent and hand it to the Chinese.”

However, US Secretary of Commerce Gina Raimondo told reporters on Sunday that the new regulations were “designed to safeguard the most advanced AI technology and ensure that it stays out of the hands of our foreign adversaries, but also enabling the broad diffusion and sharing of the benefits with partner countries.”

The new global export rules categorize countries into three tiers for AI chip exports. Allies like Japan and Australia will not encounter any changes, while nations like China and Russia face stricter limits on powerful AI models. Most countries face new computing caps, aiming to block China’s indirect access amid soaring chip demand.

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