Biden proposes new export controls on graphics processing units targeting China

The Biden administration revealed ““, which aims to restrict the export of graphics processing units most in demand for AI applications. Although it does not mention the country by name, it is widely seen as a way to prevent China from overtaking the United States in AI development.

The rule proposes three levels of licensing. The first level is unrestricted and includes the domestic market as well as 18 strategic allies. The majority of countries fall into Tier 2, which will have limits on the amount of computing power that can be imported via top-end GPUs from the United States. The third level includes China, Russia, Iran, and North Korea, and effectively prevents American companies from selling their most powerful GPUs there.

US-based companies will also be prohibited from sharing many details of their AI software models with countries outside this first tier, and will need to seek permission from the federal government before building large data centers in any tier two countries.

Several parties, including the Semiconductor Industry Association (SIA), have issued it. He condemned the decision, believing the restrictions would do more to push countries toward working with China. “The new rule risks causing unintended and lasting harm to the US economy and global competitiveness in semiconductors and artificial intelligence by ceding strategic markets to our competitors,” SIA wrote.

NVIDIA also objected, with Ned Finkel, the company’s vice president of government affairs, saying the Biden administration “seeks to undermine America’s leadership with a 200-plus page regulatory morass, drafted in secret and without proper legislative review.”

The rule has a 120-day comment period, so whether it will continue in the next Trump administration remains an open question.