Biden Proposes New Export Controls on GPUs Targeting China

The Biden administration has unveiled its AI diffusion rule, aimed at restricting the export of GPUs highly desired for AI applications. Although it does not explicitly name China, the rule is widely seen as a measure to prevent China from surpassing the US in AI development.

Three Licensing Tiers

The regulation proposes three licensing tiers. The first tier is unrestricted, including the domestic market as well as 18 strategic allies. Most countries fall into a second tier, which will have caps on the amount of computing power they can import from top US GPUs. The third tier, which includes China, Russia, Iran, and North Korea, effectively bans US companies from selling their most powerful GPUs to these nations.

Restrictions on AI Software Models

US-based companies will also face restrictions on sharing details of their AI software models with countries outside the first tier. Additionally, they will need federal government permission before building large data centers in any tier two nation.

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Industry Reactions

Many groups, including the Semiconductor Industry Association (SIA), condemned the decision, believing the restrictions could push nations to collaborate more with China. The SIA stated, "The new rule risks causing unintended and lasting damage to America’s economy and global competitiveness in semiconductors and AI by ceding strategic markets to our competitors."

NVIDIA also objected, with Ned Finkle, the company's Vice President of Government Affairs, criticizing the Biden administration for drafting the 200+ page regulation in secret and without proper legislative review.

Future Uncertainty

The rule has a 120-day comment period, and its fate in the incoming Trump administration remains uncertain.