Biden Admin Mulls Export Cap On AI Chips To Some Countries

Biden Admin Mulls Export Cap On AI Chips To Some Countries

Nvidia shares, which hit record highs on Monday, are now sliding in premarket trading in New York after a Bloomberg report revealed that US officials are considering restricting the sale of the chipmaker’s advanced AI chips to specific countries.

The report cites sources familiar with continuing talks within the Biden administration, which have discussed this new possible strategy in creating a ceiling on export licenses under the guise of ‘national security’ risks. They said the possible limation of these AI chips is centered around oil/gas-rich Persian Gulf countries with deep pockets and splurging on new massive AI data centers. 

Here’s more from the report:

Deliberations are in early stages and remain fluid, the people said, noting that the idea has gained traction in recent weeks. The policy would build on a new framework to ease the licensing process for AI chip shipments to data centers in places like the United Arab Emirates and Saudi Arabia. Commerce Department officials unveiled those regulations last month and said there are more rules coming.

A spokesperson for the White House National Security Council did not comment on internal Biden administration discussions. However, the spokesperson pointed to a recent joint statement by the US and UAE on AI published on the White House’s website:

We recognize the tremendous potential of AI for good, including to accelerate economic growth, transform education and healthcare, create jobs, and drive environmental sustainability. At the same time, we acknowledge the challenges and risks of this emerging technology and the vital importance of safeguards and protections with respect to the most advanced technologies.

About one year ago, the Biden administration restricted AI chip shipments to more than 40 countries across Asia, Africa, and the Middle East over fears Nvidia A100 and H100 could be redirected to China. 

In June, Tarun Chhabra, senior director of technology at the National Security Council, told the audience at a forum without naming countries, “We will have to have a conversation with countries around the world about how they plan to use these capabilities,” adding, “If you’re talking about countries that have a really robust internal surveillance apparatus, then we have to think about: How exactly will they use these capabilities to supercharge that kind of surveillance, and what will that look like?”

It’s still being determined whether the Biden administration will push through new chip restrictions. The immediate reaction in the market this morning was Nividia, down 1.3%, and Advanced Micro Devices, down 1.3%.  

Bloomberg added:

While officials have debated the best approach, they’ve slowed high-volume AI chip license approvals to the Middle East and elsewhere. But there are signs things could get moving soon: Under the new rules for shipments to data centers, US officials will vet and preapprove specific customers based on security commitments from both the companies and their national governments, paving the way for easier licensing down the road.

Any new AI chip restrictions from the Biden administration will add to the measures it has taken to arrest chip development and production in China—whether direct or indirect. New restrictions will certainly test US diplomatic relationships.  

Tyler Durden
Tue, 10/15/2024 – 07:45

via ZeroHedge News https://ift.tt/Dm5lCwb Tyler Durden

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