Washington: The Biden administration has unveiled new restrictions on the export of artificial intelligence (AI) chips, aiming to curb the flow of advanced technologies to China, Russia, and other nations deemed as "countries of concern" for national security reasons. This latest move comes just a week before the administration's term concludes, marking a significant step in its efforts to fortify global technology security.
According to Yonhap News Agency, the newly released interim final rule exempts 20 key U.S. allies and partners, including South Korea, from these chip sale restrictions. For other countries, the rule establishes a cap on the amount of computational power they can acquire. This policy aims to foster a secure technology ecosystem globally while safeguarding against national security threats linked to AI. Secretary of Commerce Gina Raimondo emphasized that the controls are designed to protect U.S. technological leadership without hindering innovation.
The list of exempted allies and partners comprises nations such as Japan, Australia, Canada, Germany, France, and New Zealand. Companies that meet high security and trust standards and are based in these countries can attain "universal verified end user (UVEU)" status, as per the Commerce Department's Bureau of Industry and Security (BIS). This status allows them to allocate up to 7 percent of their global AI computational capacity in various countries.
Entities without the verified end user status, located outside of close U.S. allies, are still permitted to purchase substantial computational power, up to 50,000 advanced graphics processing units (GPUs). This cap can rise to 100,000 GPUs if they align with U.S. export and other standards through a signed arrangement. Moreover, those meeting security requirements but not based in countries of concern can apply for "national verified end user" status, allowing them to procure computational power equivalent to up to 320,000 GPUs over two years.
Orders involving computational power up to approximately 1,700 advanced GPUs do not require a license and do not affect national chip caps. The BIS notes that the majority of chip orders fall into this category, including those from universities and medical institutions.
The rule continues to ensure that advanced semiconductors are not misused by China, Russia, and other nations of concern, while still allowing access for general-purpose applications across sectors like telecommunications and banking. National Security Adviser Jake Sullivan highlighted that the rule offers greater clarity to international partners and the industry, countering risks posed by malicious actors seeking to exploit advanced American technologies.
Despite these measures, U.S. AI chipmakers reportedly oppose the rule, citing potential hindrances to their efforts to meet the growing global demand for AI applications.