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U.S. tightens controls on global flow of artificial intelligence chips | Real Time Headlines

U.S. President Biden delivers a speech on promoting the safe, reliable and trustworthy development and use of artificial intelligence in the East Room of the White House in Washington, DC, on October 30, 2023.

Brendan Smirovsky | AFP | Getty Images

The U.S. government said on Monday that it will further restrict the export of artificial intelligence chips and technology, carve up the world, keep advanced computing capabilities in the hands of the United States and its allies, and find more ways to prevent China from entering.

The new rules would limit the number of artificial intelligence chips that can be exported to most countries and allow America’s closest allies to have unlimited use of U.S. artificial intelligence technology, while still banning exports to China, Russia, Iran and North Korea.

The lengthy new rules unveiled in the final days of outgoing President Joe Biden’s administration extend beyond China and are intended to help the United States maintain its dominance in artificial intelligence by reining in artificial intelligence globally.

U.S. Secretary of Commerce Gina Raimondo said: “The United States is now a leader in artificial intelligence, whether it is artificial intelligence development or artificial intelligence chip design, and it is critical that we maintain this leadership.”

The rules limit the Biden administration’s four-year effort to impede China’s access to advanced chips to bolster its military capabilities and to control the flow of chips and the global development of artificial intelligence by closing loopholes and adding new guardrails to keep the U.S. Leadership in Artificial Intelligence.

While it’s unclear how President-elect Donald Trump’s incoming administration will enforce the new rules, the two governments share similar views on the competitive threat from China. The regulation will take effect 120 days after issuance, giving the Trump administration time to weigh in.

There will be new constraints on advanced graphics processing units (GPUs), which are used to power the data centers needed to train artificial intelligence models. Most are made by Santa Clara, Calif.-based Nvidia, while Advanced Micro Devices also sells AI chips.

Major cloud service providers such as Microsoft, Google and Amazonwill be able to seek global authorization to build data centers, an important part of new rules that will exempt their projects from national quotas on artificial intelligence chips.

To receive the seal of approval, authorized companies must adhere to strict conditions and restrictions, including security requirements,

So far, the Biden administration has imposed sweeping restrictions on China’s access to advanced chips and their production equipment, updating controls every year to tighten restrictions and catch countries potentially transferring technology to China.

Nvidia worries about ‘overexpansion’

Powerful industry voices criticized the plan before it was released, as the rules change the landscape of artificial intelligence chips and data centers around the world.

Nvidia on Monday called the rule “completely out of scope” and said the White House would restrict “technology already in mainstream gaming PCs and consumer hardware.” data center provider Oracle Earlier this month, it was announced that the rule would “hand over a large portion of the global artificial intelligence and GPU market to our Chinese competitors.”

The rules impose global licensing requirements for certain chips (with exceptions) and also control “model weights” for state-of-the-art “closed weight” artificial intelligence models. Model weights help determine decisions in machine learning and are often the most valuable element of an AI model.

This code divides the world into three levels. About 18 countries, including Japan, Britain, South Korea and the Netherlands, are largely exempt from the rules. About 120 countries, including Singapore, Israel, Saudi Arabia and the United Arab Emirates, will also face national caps. Countries with arms embargoes such as Russia, China and Iran would be completely banned from receiving the technology.

In addition, U.S.-based providers such as AWS and Microsoft that may receive global authorization will only be allowed to deploy 50% of their total AI computing power outside the United States, no more than 25% outside Tier 1 countries, and no more than in The proportion in a single non-tier one country is less than 7%.

Artificial intelligence has the potential to increase access to benefits such as health care, education, and food, and can also help develop biological and other weapons, support cyberattacks, and assist with surveillance and other human rights abuses.

“The United States must prepare for rapid growth in artificial intelligence capabilities in the coming years, which could have transformative impacts on the economy and our national security,” said National Security Adviser Jake Sullivan.

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