The U.S. government announced new regulations on Monday that further restrict exports of artificial intelligence (AI) chips and technology, aiming to keep advanced computing power within the U.S. and its allies while blocking China’s access.
The new rules cap the number of AI chips that can be exported to most countries, allowing unlimited access to U.S. AI technology for close allies, while keeping a block on exports to China, Russia, Iran, and North Korea.
“The U.S. leads AI now – both AI development and AI chip design, and it’s critical that we keep it that way,” said U.S. Commerce Secretary Gina Raimondo.
The regulations aim to limit China’s access to advanced chips that could enhance its military capabilities. The rules take effect in 120 days, allowing President-elect Donald Trump’s administration time to review them.
The restrictions apply to advanced graphics processing units (GPUs), crucial for AI data centers. Nvidia and AMD saw their shares drop by 2% to 3% in premarket trading.
Major cloud providers like Microsoft, Google, and Amazon can apply for global authorizations to build data centers. Once approved, they will no longer need export licenses for AI chips.
However, companies must meet strict conditions on security and human rights.
Nvidia criticized the new rules, calling them “sweeping overreach,” while Oracle warned the regulations might hand the global AI market to Chinese competitors. The rules also include licensing requirements and set controls on “model weights,” which are crucial in AI decision-making.
The regulations divide the world into three tiers.
About 18 countries, including Japan and the U.K., will be exempt, while 120 others, including Singapore and Saudi Arabia, will face country-specific caps. China, Russia, and Iran are completely banned from receiving AI technology.
U.S. National Security Adviser Jake Sullivan emphasized, “The U.S. has to be prepared for rapid increases in AI’s capability, which could have a transformative impact on the economy and national security.”
