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Biden to Restrict AI Chip Exports to China, Russia, Favoring U.S. Allies

Jan 9, 2025, 01:03 PM

The Biden administration is set to implement further restrictions on the export of artificial intelligence (AI) chips from companies like Nvidia Corp. and Advanced Micro Devices Inc. (AMD) in its final days in office. The move aims to curb the sale of AI chips used in data centers to countries like China and Russia, with the goal of concentrating AI development in friendly nations and aligning global businesses with U.S. standards. The proposed regulations would establish three tiers of export restrictions: the first tier would allow a small number of U.S. allies, including Germany, the Netherlands, Japan, South Korea, and Taiwan, to maintain essentially unmitigated access to American chips; the second tier would impose limits on the total computing power that can be allocated to any one country for the majority of the world; and the third tier would effectively block adversaries like China and Russia from importing these semiconductors. Nvidia has criticized the plan, arguing that it would not reduce the risk of misuse but would threaten economic growth and U.S. leadership in the AI sector.