Biden Administration’s New AI Chip Rules Face Industry Backlash

Key Points

The plan covers over 120 countries, including China and parts of the Middle East and Southeast Asia. National Security Adviser Jake Sullivan said, “If it’s China and not the United States leading in AI, the consequences will be severe.”

Commerce Secretary Gina Raimondo said the goal is to prevent adversaries from using U.S. AI for their own gain, and the administration is working with allies like Germany, Japan and Australia. But economic impacts are growing concerns.

Industry Concerns

The Semiconductor Industry Association (SIA) called the proposed rules “hasty and bad for American business”. SIA President John Neuffer said they would disrupt global supply chains and harm U.S. innovation.

European Union officials are also unhappy, citing economic damage. While some allies are exempt, others in the EU are included, which is causing more friction.

Nvidia

Nvidia, a leading AI chip maker, is pushing back hard. Ned Finkle, the company’s Vice President of Government Affairs, said the rules won’t improve U.S. security and will slow down tech progress.

“These rules, masquerading as an ‘anti-China’ measure, won’t improve U.S. security,” Finkle said. “They’ll hurt America’s tech edge.”

Nvidia also noted the chips are used in consumer products, so what’s the point of the policy?

Strategic

This comes as China is accelerating its AI development and the tech competition between the two countries is heating up. The administration says it’s time to act to protect U.S. leadership, but critics are worried about the hasty rollout and the confusion it will cause.

With a 120-day comment period, the incoming Trump administration will have the final word. Industry leaders are calling for a balanced approach to national security and economic growth.

Read more: https://apnews.com/article/biden-ai-artificial-intelligence-chips-computer-trade-4495b5b4a48e856dc612e7abe3e47d20

Last modified 15 January 2025 at 19:59