Biden administration implements ‘final rule’ on AI export controls, tech world claps back

Before President-elect Donald Trump takes office next week, the Biden White House announced Monday a “final rule” that would put export controls on artificial intelligence (AI) chips. Emerging technology.

With the goal of strengthening “America’s security and economic strength,” the Biden-Harris administration issued an “interim final rule on the proliferation of artificial intelligence.”

According to a White House fact sheet, the initiative will ease licensing barriers for large and small chip orders, strengthen US AI leadership, and provide clarity on how partner and partner nations can benefit from AI, while also “building on previous chip efforts to thwart smuggling, close other loopholes, and strengthen AI security standards.” It controls by raising.

When asked about his advice to the incoming Trump administration on the policy, national security adviser Jake Sullivan pointed to the “critical time window” regarding competition with China, telling reporters on Sunday that the United States is only six to 18 months away. Before Beijing regarding AI technology.

“From our perspective, we have a national security responsibility to do two things. First, to protect, preserve and extend America’s AI leadership, especially to these strategic competitors. And second, to ensure that the benefits of America’s AI are distributed to people in the region. Including the construction of global data centers to run AI applications. ” said Sullivan.

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Sullivan said the final rule would “ensure that the infrastructure to train border AI, the best AI systems at the border, happen in the U.S. or in the states of our closest partners, and that this capability doesn’t come off shore like chips and batteries and other industries to bring hundreds of billions of dollars offshore.” We had to invest.

In a call with Sullivan on Sunday, U.S. Commerce Secretary Gina Raimondo explained to reporters how the final rule would take a three-pronged approach.

The author first explained how it works in “expanding and updating the controls of advanced AI chips”. Second, as Raimondo describes it, the regulation works to “create a new set of controls to prevent the most advanced closed AI model weights (into) falling into the hands of our adversaries.” The third step, she said, would include “putting in place safeguards to protect critical technologies and large AI clusters” as well as “precautionary measures to target regulatory threats to national security and allow business to continue.”

Raimondo said that the action “is designed to protect the most advanced AI technology and keep it out of the hands of our foreign enemies, but also to allow a wider distribution and sharing of its benefits with partner countries.”

Although the law won’t go into effect for 120 days, industry groups and chip company officials have expressed concern that the administration will implement complex legislation without consulting industry stakeholders in the final days of Biden’s term, saying the framework will harm American interests and stifle innovation.

Mexico, Portugal, Israel and Switzerland are among those likely to face additional restrictions.

NVIDIA, a major AI computing and technology company based in California, announced the final rule in a statement released Monday.

“In Biden’s final days, the Biden administration seeks to undermine America’s leadership with a 200+ page executive order drafted in secret and without proper legal review,” wrote Ned Finkel, NVD’s vice president of government affairs. “This far-reaching attack would impose bureaucratic controls on how America’s leading semiconductors, computers, systems and software are designed and sold globally. And by trying to manipulate market outcomes and stifle competition — the lifeblood of innovation — the Biden administration’s new law could squander America’s hard-won technology Advantage.

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“Dressed in the guise of ‘anti-China,’ these laws do nothing to improve American security,” Finkel added. “The new rules will regulate technology around the world, including the technology found in mainstream gaming PCs and consumer hardware. Instead of addressing any threat, Biden’s new rules will weaken America’s global competitiveness, harming the innovation that has kept America moving forward.”

A technology industry group, the Information Technology Industry (ITI) Council, sent a letter to Raimondo last week asking the US government to “issue this proposed rule as a Notice of Proposed Rulemaking (NPRM) rather than as an interim final or final rule.” Considering the significant geopolitical and economic implications the proposed approach would have.

ITI President Jason Oxman warned that the accelerated framework proposed by the Biden-Harris administration would disrupt global supply chains and put the US at risk.

“As we understand it, the Act places international limits on the right of countries to access integrated districts, regardless of cluster size or use case,” Oxman wrote. “Such legislation would cede the global market to U.S. competitors eager to fill the untapped demand created by arbitrary restrictions on the efforts of U.S. companies to sell basic computing systems overseas. An ecosystem that would be difficult, if not impossible, to recover in the future.”

A White House fact sheet said the final rule would remove restrictions on chip sales to 18 key partners and affiliates. These include Australia, Belgium, Canada, Denmark, Finland, France, Germany, Ireland, Italy, Japan, Netherlands, New Zealand, Norway, Republic of Korea, Spain, Sweden, Taiwan and the United Kingdom.

However, the law envisages restrictions on the chips that other countries can import. The White House said those who “meet the highest security and integrity requirements and are headquartered with close allies and partners” can access the United States’ most trusted “universal verified end-user” status.

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For those without the standard, purchases are limited to 50,000 graphics processing units per country, but government-to-government agreements could be made to increase the limit to 100,000.

Other countries not headquartered in the U.S. can apply for “national certified end-user” status, which would allow them to buy 320,000 advanced graphics processing units over two years, but with some limits on how much AI computing power can be deployed by companies and other institutions abroad.

Fox Business’ Sarah Tobiansky contributed to this report.