Microsoft urges Trump team to ease AI chip export restrictions

Microsoft has called on U.S. President Donald Trump’s team to ease export restrictions on artificial intelligence chips imposed in the final days of his previous administration, arguing that the rules should not apply to key U.S. allies.

In a blog post on Thursday, the company stated that the current regulations limit AI chip exports to countries including India, Switzerland, and Israel, affecting U.S. tech firms' ability to expand AI data centers in these regions.

Tighter U.S. controls on advanced AI chips, such as those produced by Nvidia (NVDA.O), have restricted American companies from servicing one of the largest semiconductor markets, intensifying global competition for AI infrastructure. In the closing days of the Joe Biden administration, the U.S. government announced further curbs on AI chip exports, aiming to secure computing power within the U.S. while blocking China’s access.

Microsoft warned that these restrictions could inadvertently benefit China in the AI race. "Left unchanged, the Biden rule will give China a strategic advantage in spreading over time its own AI technology, echoing its rapid ascent in 5G telecommunications a decade ago," the company said.