US tightens control over AI chips globally

The US said it would restrict exports of AI chips to keep advanced computing power in the country and block access from China.

Announced late on January 12 - a week before President Joe Biden leaves office, the new rule will limit the number of AI chips that can be exported to most countries, but still allow America's closest allies unlimited access to AI technology.

“The United States is currently a leader in both AI chip development and design, and it is important that we maintain this position,” said US Commerce Secretary Gina Raimondo.

According to Reuters , the new rule does not only apply to China, but also aims to help the US maintain its dominance in artificial intelligence by controlling the field on a global scale. It will also "close" loopholes and add new barriers to control the flow of chips and global AI development.

A sample GPU from Nvidia. Photo: Nvidia

It is unclear how the provisions will be enforced by the Trump administration, which shares similar views on the threat of technological competition from China. The new rule will take effect 120 days after its publication, giving the Trump administration more time to consider it.

Some of the provisions put limits on advanced graphics chips (GPUs) used to train AI models and data centers. Nvidia, the dominant company in the AI ​​chip space, was quick to respond after the rules were announced.

“In its final days in office, the Biden administration is seeking to undermine American leadership with a regulatory mess of more than 200 pages, drafted in secret and without proper legislative review,” Nvidia wrote in a blog post on January 13. “The global progress in AI is at stake.”

The Biden administration appears to be trying to manipulate market outcomes and stifle competition, the lifeblood of innovation, Nvidia said. “Regulation is squandering America’s hard-won technological advantage,” Nvidia said.

Nvidia's reaction is understandable, as the rules could hurt the company the most, according to Tom's Hardware . The terms currently separate three groups that can buy advanced GPUs: Global Verified Users (EVEU); Country Verified Users (NVEU); and Verified Users (VEU). EVEU refers to companies that meet US security requirements and are based in countries with strong ties to the US. NVEU meets the same security standards but "does not operate in countries of concern."

As such, depending on the country they operate in, companies are subject to limits on the number of “advanced GPUs” they can purchase. NVEU can purchase no more than 320,000 “advanced GPUs” over two years. Non-VEU companies must accept a limit of 50,000 GPUs or less per country — a level the US says “exists to make US technology available to local governments, healthcare businesses, and commercial entities.”

“ Nvidia clearly doesn’t like the new regulation,” Tom’s Hardware commented. “They may be waiting for the new administration to do a better job.”

"As demonstrated in the first Trump term, America wins by innovating, competing, and sharing our technology with the world, not by retreating behind a wall of government overreach," Nvidia said in a blog post. "We look forward to returning to policies that strengthen American leadership, boost the economy, and maintain our competitive edge in AI and beyond."

Bao Lam

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