Biden Introduces New AI Chip Curbs to Target China and Russia before Exit

In the final chapter of his administration, President Joe Biden’s team is set to impose another layer of restrictions on exporting AI chips, reportedly targeting companies such as Nvidia Corp. This move underscores a concerted effort to prevent China and Russia from acquiring advanced technological capabilities.

The United States aims to curtail the international sale of AI chips, which are instrumental in powering data centers, on both country-specific and corporate levels, insiders have disclosed. The initiative seeks to centralize AI advancements within nations allied with American interests while urging global enterprises to adhere to U.S. regulatory frameworks.

Anticipated regulations, possibly released by Friday, would categorize the globe into three tiers concerning chip trade. A privileged group of key U.S. allies would retain near-unrestricted access to American semiconductor technology, whereas adversary nations would encounter firm prohibitions. Most countries will be subject to constraints on the volume of computing power available to them.

Nations falling within the largest group can potentially receive higher allowances by complying with U.S.-mandated security protocols and human rights criteria, an unnamed source indicated. This initiative, known as validated end user (VEU) status, aims to establish a network of secure, trusted entities for AI development around the globe.

These restrictions are categorized into three tiers:

Tier 1 (Most permissive) – Countries marked in blue will face the least restrictive policies regarding chip imports. The United States, Canada and Australia are in this category.

Tier 2 – Countries marked in yellow will have moderate restrictions. Brazil, India, South Africa, Vietnam and Thailand are in this category.

Tier 3 (Most restrictive) – Countries marked in pink will experience the most stringent restrictions on chip imports. China, Russia and Iran are in this category.

 

Nvidia wrote in a statement in objection, stating that 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,” Nvidia said.