The Biden administration has introduced a new rule aimed at governing the global spread of AI, specifically targeting the export of advanced AI chips and related technologies. This move is part of a broader effort to limit China's access to high-end chips critical for training advanced AI models.¹
The rule creates a three-tier system for semiconductor exports, with 18 allied countries, including South Korea and Japan, exempt from restrictions. Countries in the second tier, such as China and Russia, face strict restrictions, while those in the third tier are subject to caps on computing power.²
Industry reactions have been largely negative, with companies like Nvidia and Oracle expressing concerns that the rule will hinder U.S. competitiveness and create unnecessary bureaucratic hurdles. Nvidia's vice president of government affairs, Ned Finkle, described the rule as a "sweeping overreach" that imposes controls on not just semiconductors but also computers, systems, and software designed and sold globally.
The rule's impact is expected to be significant, with potential implications for the global AI landscape. As the Biden administration's term comes to a close, it remains to be seen how the incoming administration will approach this issue.
