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Biden Administration Proposes New Rules On AI Chip Exports

Writer's picture: By The Financial DistrictBy The Financial District

The Biden administration has unveiled a proposed framework for regulating the export of advanced computer chips used in artificial intelligence (AI), aiming to address national security concerns while balancing the economic interests of chip manufacturers and allied nations, The Associated Press (AP) reported.


The new rules are feared to limit access to existing chips used in video games and restrict the export of chips for data centers and AI products to 120 countries.



The new rules have sparked concerns among industry executives, who fear they could limit access to existing chips used in video games and restrict the export of chips for data centers and AI products to 120 countries.


Nations such as Mexico, Portugal, Israel, and Switzerland may face reduced access under the proposed framework.



Commerce Secretary Gina Raimondo emphasized during a press call that preserving U.S. leadership in AI and chip development is "critical." She highlighted the transformative potential of AI, which enables breakthroughs in fields ranging from scientific research to autonomous driving and military applications.


“As AI becomes more powerful, the risks to our national security become even more intense,” Raimondo said.



The proposed framework aims to safeguard advanced AI technologies from adversaries while promoting their responsible use and sharing with allied countries.


White House National Security Adviser Jake Sullivan echoed Raimondo’s sentiments, stressing the importance of keeping the most advanced AI developments within the U.S. and its closest allies. He drew parallels to other high-tech sectors, such as battery and renewable energy industries, where domestic development has been prioritized to prevent offshoring.




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